Survey says: Investing in the middle market and the need for specialization to dominate PE dealmaking in 2026.
authors
Christopher Bole
Christopher Bole
Vice President, Financial Writer
Survey: Which trend will most shape PE deal flow in 2026?
Chart showing PE investors’ primary expected areas of focus in 2026. They anticipate an increased focus on smaller and mid-market opportunities—37% compared to 14% last year. Sector specialization comes in second at 35%.
Source: Pitchbook 2026 US Private Equity Outlook.
  • Private equity (PE) participants enter 2026 with cautious optimism, supported by a solid economic backdrop, more accommodative monetary policy, rising transaction volume and expectations for a healthier exit environment.
  • Investor focus is also shifting to the middle market. 37% of PE investors say small and middle‑market companies will be the primary trend in PE dealmaking in 2026, nearly triple last year’s 14% and higher than any other trend.1
  • Middle‑market PE strategies remain one of the few places offering attractively priced domestic growth opportunities, especially as public market valuations remain elevated and large-cap PE strategies face intensified competition for deals.
  • Investors also increasingly favor managers with sector specialization, reflecting the view that operational excellence, not financial engineering, will drive the majority of private equity returns going forward.
contributing authors
Christopher Bole
Christopher Bole
Vice President, Financial Writer
footnotes + disclosures
  1. Pitchbook 2026 US Private Equity Outlook.

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