The State of US Private Equity Report

Gain

Research

36 Pages

Gain reviews a private equity market that is stabilizing after a volatile cycle, with activity returning but fundamentals shifting. Growth has slowed meaningfully from peak levels, and value creation is now driven more by operations than multiple expansion.

Key Takeaways

Growth Slowed Sharply: Median PE backed company growth fell to 5.6% in 2025, down from 22.1% in 2021.
Value Creation Shifted: Revenue growth now drives about 75% to 80% of returns, up from roughly 40% to 45% in 2019 to 2021.
Sector Dispersion Wide: TMT grew 15.6% versus 7.6% for healthcare and 8.7% for industrials, highlighting uneven performance.
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