PE Pulse: key takeaways from Q1 2025

PE Pulse: key takeaways from Q1 2025

From NextWave Private Equity by Bridget Walsh, EY

May 1, 2025 · 7 min

About this episode

In Q1 2025, private equity firms experienced a significant rise in deal volume while facing caution due to trade tensions.

In Q1 2025, private equity firms saw a 45% rise in deal volume compared to the previous year. However, rising trade tensions are creating caution among investors. Many firms may limit capital deployment in the coming months, yet a higher-than-average risk tolerance indicates readiness to seize new opportunities. Firms are focusing on operational improvements within their portfolios and exploring sectors like aerospace and defense. Additionally, the return of corporate acquirers has boosted exit activity, reflecting a dynamic shift in the private equity landscape amid ongoing uncertainty. Visit https://www.ey.com/pepulse to view this quarter's summary.

Topics covered

  • private equity
  • deal volume
  • trade tensions
  • capital deployment
  • operational improvements
  • aerospace
  • defense
  • exit activity

Keywords

  • Q1 2025
  • investment opportunities
  • corporate acquirers
  • portfolio management

Mentioned in this episode

Products: private equity

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