PitchBook PE Deals Reach $1.16T While Dry Powder Hits $1.1T
Morningstar’s PitchBook subsidiary reported private equity deals reached $1.16 trillion in the second half of 2025, the highest since 2021, while dry powder swelled to a record $1.1 trillion. Fundraising fell to $277.9 billion in 2025, the worst year since 2020, signaling potential headwinds for subscription and data analytics revenue.
1. Deal Volume Surge
PitchBook’s analysis shows private equity M&A transactions totaled $1.16 trillion in the second half of 2025, marking the strongest deal flow since 2021 and reflecting a rebound in exit activity across buyout and growth funds.
2. Record Dry Powder Levels
Unallocated capital in private equity funds climbed to $1.1 trillion, creating pressure on fund managers to deploy commitments and highlighting liquidity constraints that may delay new investments or exits.
3. Fundraising Downturn
Fundraising for private equity fell to $277.9 billion in 2025 from $381.6 billion in 2024, representing the weakest annual total since 2020 and undercutting future fee-based revenue streams.
4. Implications for Morningstar’s Analytics
The volatility in returns, rising dry powder and fundraising slump may drive greater demand for PitchBook’s private market data and analytics, potentially boosting Morningstar’s subscription services in the wealth management and institutional segments.