"As I was wading through the waters of all our predictions, readers painted a picture of possibilities and pressure in the private markets. AI, on one hand, is a force multiplier-on the other, it will be unevenly impactful and the losses as the industry consolidates will be staggering. Liquidity, meanwhile, is making a comeback, albeit with a new normal. Velocity is increasing, but so is fragility."
"There was also an echo of "bigger, fewer, and with more power," that the wave of capital concentrating at the largest firms across the private markets is undeniable-and that the middle of the pack is in danger. The message from many of you: Only stark differentiation and scale will survive. Here's what Term Sheet readers believe 2026 and beyond hold for the various corners of the private markets."
"Private equity 2026 will be a year where private equity accelerates their pace of deal making. Four years of capital deployment exceeding distributions has created an environment where firms will need to focus on a return of capital rather than a return on capital. This will translate to more M&A, more IPOs and more continuation vehicles. -Jason Greenberg, global co-head of technology, media, and telecommunications investment banking, Jefferies"
Private equity is poised to accelerate dealmaking in 2026, with more M&A, IPOs, and continuation vehicles as firms prioritize returning capital. Declining interest rates lower cost of capital, increase liquidity, and boost transaction activity. Secondary demand and continuation vehicles strengthen exit options and ecosystem dynamics. AI serves as a force multiplier but will have uneven impact and contribute to staggering consolidation losses in some areas. Capital is concentrating at the largest firms, threatening middle-tier players, and creating a landscape where stark differentiation and scale determine survival amid rising velocity and fragility.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]