Private equity dealmaking is showing resilience in 2025, with U.S. deal value up year-over-year, according to a new report from Affinity. However, the data also reveals a strategic shift, with firms becoming more selective about their targets and increasingly focused on proactive networking to source opportunities.

Why it matters: Despite sitting on nearly $1.5 trillion in dry powder, PE firms are not deploying capital indiscriminately. Instead, they are navigating economic uncertainty by targeting larger, higher-quality assets and doubling down on relationship-building to gain a competitive edge in a crowded market.

By the numbers: The report, which analyzed data from over 200 PE firms, found:

  • U.S. PE deal value reached $227.7 billion in the first half of 2025, a 10.7% increase year-over-year.
  • The median number of deals per firm declined by 6% YoY in Q2 2025, pointing to greater selectivity.
  • Deals over $10 billion accounted for 27% of total PE spending, up significantly from 11% in 2024.
  • Firms saw a 29% YoY increase in new contacts added in Q2 2025, signaling a push for outbound deal origination.
The big picture: After a dip in activity in late 2024, deal flow rebounded with a 25% quarter-over-quarter increase in Q1 2025. This pickup coincided with a ramp-up in networking, as firms expand their contacts to fuel new deal pipelines amid growing pressure to deploy capital.

Zoom in: The strategic shift is evident in firm behavior.

  • Along with adding new contacts, email engagement rose 7% YoY in Q1 2025, as firms work to nurture new and existing relationships for proprietary deal flow.
  • This proactive approach is a response to a landscape where, according to the report, differentiation in networking and data-driven insights can help firms source deals earlier.
What to watch: The report identifies several behaviors common among high-performing firms that may become a blueprint for the wider industry.

These firms tend to expand their networks well ahead of capital deployment, engage multiple stakeholders on a deal rather than relying on a single contact, and sustain their outreach efforts even during slower market periods to maintain a steady pipeline.

Affinity’s 2025 Private Equity Benchmark Report can be downloaded here.

SOURCE: Affinity

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