Podcast Summary: Becker Business – "5 Private Equity Trends to Watch in 2026"

Host: Scott Becker
Date: January 5, 2026
Episode Focus:
A concise rundown of the top five trends shaping the private equity landscape heading into 2026, based on recent market activity, performance indicators, and shifting investment strategies.

Main Theme

Scott Becker uses this episode to highlight key developments in private equity (PE) over the past year and to forecast influential trends that investors, managers, and market watchers should track for 2026. The focus is on fundraising challenges, shifting exits, sector preferences, mega fund dominance, and increased reliance on creative liquidity solutions.

Key Discussion Points and Insights

1. Fundraising Challenges Persist

• (00:44 - 01:05)
  • 2025 was another tough year for private equity fundraising in the US.
  • A difficult environment for exits over the past few years continues to weigh on LPs’ willingness to re-invest.
  • Investors are “concerned to double down on their private equity investments until they start seeing returns from their last set of funds.”

2. Exit Values Up, but Activity Concentrated

• (01:05 - 01:36)
  • Overall US exit values rose significantly but this is somewhat misleading.
  • “It’s really an 80/20 type rule. A small percentage of big, big IPOs, big big deal deals led to some really big exits, but overall deal activity at the mid-market was slower and softer and exits there were softer.”
  • The bulk of exit volume is coming from a handful of very large transactions, not broad-based strength.

3. Shift Towards Infrastructure, Healthcare, Financial Services

• (01:36 - 01:52)
  • There is elevated interest and activity in infrastructure, healthcare, and financial services.
  • Technology remains important, but these sectors are claiming larger allocations and deal flow.

4. Mega Funds Dominate Fundraising and Deal Markets

• (01:52 - 02:02)
  • Market activity is increasingly concentrated among a few massive funds.
  • “Mega funds dominated both the fundraising market and the deal market. We’ll see how that continues to play out, even though a couple of the mega funds really struggled from a market return standpoint.”
  • Larger PE houses are outpacing smaller and mid-sized funds, even as some face performance setbacks.

5. Creative Liquidity Solutions Proliferate

• (02:02 - 02:22)
  • Funds are relying increasingly on continuation deals, special purpose vehicles, and recaps.
  • “To find liquidity and keep their limited partners happy at a time where exit multiples and exits have not been as fast and furious as people would like them to be.”
  • These vehicles help to deliver interim returns and maintain LP confidence.

Notable Quotes & Memorable Moments

• On fundraising difficulties:

  “It’s been a tough year, tough few years for exits and that’s led fundraising to be softer.”
  — Scott Becker (00:44)

• On the misleading nature of strong exit values:

  “It’s really an 80/20 type rule. A small percentage of big, big IPOs, big big deal deals led to some really big exits, but overall deal activity at the mid-market was slower and softer and exits there were softer.”
  — Scott Becker (01:15)

• On the rise of alternative liquidity options:

  “More and more funds rely on continuation deals, special purpose deals, other vehicles, recaps to find liquidity and keep their limited partners happy at a time where exit multiples and exits have not been as fast and furious as people would like them to be.”
  — Scott Becker (02:10)

Noteworthy Data Points

• Mega funds’ performance in 2025:
  • Blackstone: Down nearly 9%
  • KKR: Down nearly 13%
  • The Carlyle Group: Up nearly 20% (02:24 - 02:35)
• “The bolt-on market’s not finished wrong either,” suggesting that smaller add-on acquisitions remain a part of overall deal activity.

Timeline of Key Segments

• 00:30 – 00:44: Introduction to episode theme and format
• 00:44 – 01:05: Fundraising difficulties for PE funds
• 01:05 – 01:36: Exit value changes and market concentration
• 01:36 – 01:52: Sector shifts (infrastructure, healthcare, financial services, technology)
• 01:52 – 02:02: Dominance and challenges of mega funds
• 02:02 – 02:22: Use of continuation deals and creative liquidity solutions
• 02:24 – 02:35: Performance snapshot of mega funds
• 02:35 – 03:05: Closing remarks and call to action (skip for content relevance)

Conclusion

Scott Becker presents a rapid-fire, insight-rich overview of the environment facing private equity as 2026 approaches. The episode conveys current caution and creativity among PE managers—balancing sector pivots, leaning on alternative structures for liquidity, and recalibrating in the shadow of outsized exits and mega fund dominance. For listeners, the commentary offers a pragmatic pulse-check on how PE firms are managing investor expectations, capital flows, sector bets, and deal strategies in the coming year.