Q2 2026 proved challenging for private equity, as the market slowdown that began in March with the outbreak of the war in the Middle East accelerated, resulting in a significant fall in the total value of announced deals . The war sent shockwaves through the US economy, severely disrupting energy markets and driving up input costs across many sectors, while volatility and tightening in credit markets — especially for lower-rated issuers — made underwriting deals more challenging . In this uncertain environment, sponsors became highly selective, pulling back on large buyouts and directing capital toward smaller, strategic add-on acquisitions within their existing portfolios.
United StatesCorporate/Commercial Law
OUR Q2 VIEW OF THE US PRIVATE M&A MARKET
Q2 2026 proved challenging for private equity, as the market slowdown that began in March with the outbreak of the war in the Middle East accelerated, resulting in a significant fall in the total value of announced deals . The war sent shockwaves through the US economy, severely disrupting energy markets and driving up input costs across many sectors, while volatility and tightening in credit markets — especially for lower-rated issuers — made underwriting deals more challenging . In this uncertain environment, sponsors became highly selective, pulling back on large buyouts and directing capital toward smaller, strategic add-on acquisitions within their existing portfolios.
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