Private equity market trends for 2026: what’s next for investors and startups?

2025 was defined by cautious optimism. Investors grappled with geopolitical tension and liquidity pressure. But amid this uncertainty, there was no shortage of positives — including, notably, the growth of secondary market solutions. 

Many investors took advantage of the mainstream adoption of private secondary market transactions, which proved to be an exit ramp as traditional outlets, such as IPOs, remained subdued. All the while, artificial intelligence (AI) continued to infiltrate every aspect of the market, from private equity to real estate. Explore how accredited investors are unlocking liquidity in the pre-IPO market as secondary solutions gain traction.

As we approach the end of 2025, we are tackling the question on market movers’ minds: what’s next for investors and startups? Here are some key private equity market trends to watch for in 2026. 

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Deal volume is expected to rebound, but not evenly

In case you missed it, there has been an extended distribution drought in the private market, meaning a lack of liquidity and exits in private investment markets. 

This has created a scenario in which limited partners are entering the secondary market for the first time, and general partners are expanding their footprint. It has led to record-breaking volume as investors seek liquidity and general partners manage aging portfolios. This highlights a continued need for exit options in many illiquid assets. This intro to secondary markets outlines the basics of how these platforms function — and what LPs should know.

Manufacturing liquidity is one reason secondaries transaction activity hit an all-time high in 2025. But not every industry is riding the wave. Technology has flourished, while the consumer and retail sector has seen a decline in deal flow, for instance. 

The overall sentiment, though, is that private market growth is on the horizon. 

U.S. and global activity projections

EY Americas expects private equity deal volume to rise 5% in 2026. This follows an 8% increase in 2025. 

Investors will hope that this sustained activity and increased share of large deals translates into corresponding growth in deal value. Total U.S. deal volume, for deals more than $100 million, is expected to grow 3% in 2026. 

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Sector focus shifts toward technology, healthcare, and infrastructure

Private markets are becoming more accessible as new investment products offer greater flexibility and diversification. This shift is expected to benefit a wider range of investors, including institutions.

In 2026, Kearney expects sectors like technology, healthcare, and infrastructure to capture a substantial share of investment. Private equity firms are honing in on opportunities within these rapidly expanding fields, which offer promising returns and resilience, even amid fluctuations in the broader economy. Learn why AI is transforming private markets and how investors are positioning themselves in response.

Software and AI dominate deal flow

AI is still the main focus in tech investing. Companies built around AI from the ground up are selling at high prices amid the unprecedented demand. Companies built around AI from the ground up are selling at high prices

Meanwhile, investors are showing increased interest in software that supports businesses, such as cloud services, tools for developers, and industry-specific software. These companies usually earn steady, repeat income and are hard for customers to replace, making them appealing to buyers. 

Spending on AI is also rising fast, with billions of dollars flowing into data centers, chips, research, and acquisitions. The winners in the race to capitalize on this growing sector of the market may well be those who treat AI as a system rather than a single model. 

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What these trends mean for investors and startups on Augment

AI is fundamentally reshaping the market. While the AI development wave is still in its early stages, it is already changing how economies operate and where capital is being deployed. The scale of this shift suggests investors review their portfolios today to take advantage of opportunities across the entire private market. This guide to the J-curve in pre-IPO investing explains how timing and market cycles affect investor returns.

Platforms like Augment* are helping investors push forward amid this changing paradigm. The innovative marketplace allows investors to buy and sell existing stakes in private companies or funds before a traditional exit event, such as an IPO or acquisition. 

Augment helps simplify participation in high-value, data-driven deals for individuals and smaller institutions, such as pensions or endowments. As faster deal flow creates more opportunities, the platform is positioned to help investors access high-quality private deals with transparency and speed. For more on how to find the best pre-IPO investment platform, explore what sets Augment apart.

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Final takeaways for private equity investors in 2026

Liquidity will likely continue to shape private markets in 2026. For many limited partners, access to capital has become more important than maximizing price. Improving market conditions are beginning to support that shift. 

About 65% of private equity executives say pricing differences between buyers and sellers have narrowed over the past year, a notable improvement from earlier periods when deal activity was more restrained. 

Platforms like Augment have the potential to continue to tighten that gap and drive deal flow growth by making companies and entire sectors more accessible for a broader range of investors. This piece on key benefits of investing in secondary markets covers the strategic advantages for LPs and HNWIs alike.

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*Augment Markets, Inc. is a technology company offering software and data services with securities-related services offered through its wholly-owned but separately managed subsidiary Augment Capital, LLC, Member of FINRA / SIPC. 

‍Important Disclosures: This material has been prepared for informational purposes only. None of the information provided represents an offer or the solicitation of an offer to buy or sell any security. The information provided does not constitute investment, legal, tax, or accounting advice. You should consult with qualified professionals before making any investment decisions. Investing in private securities involves substantial risk, including the potential loss of principal. 

Private securities are typically illiquid, have limited pricing transparency, and often require longer holding periods. These investments are available exclusively to qualified accredited investors and offer no guarantee of returns. Additionally, past performance of private securities does not indicate or predict future results.