How private equity is building momentum in 2026

Jessica Ring explores the key trends influencing private equity-driven dealmaking as we start a new year

The last three months have seen growing momentum in private equity driven dealmaking. After a challenging 2025, November and December brought a wave of transactions, and that activity has continued into January. While the market is not without its challenges, private equity houses have capital they want to deploy and are stepping forward with renewed confidence.

Buy-and-build becomes even more central to value creation

Where activity has been happening, a key trend has been the sharpened focus on buy-and-build as part of value creation strategies.

This has become even more important in light of gradually improving, yet still modest, economic growth and the absence of a supportive interest‑rate environment for leveraged buyouts.

Buy‑and‑build is a proven lever in this context: it can add scale, unlock new markets, bring in new skills, IP or capabilities, and help create stronger, more resilient businesses, while also enabling private equity investors to benefit from multiple arbitrage through disciplined M&A execution.

For sellers, the intensified M&A appetite from private equity represents a significant opportunity. While private equity investors continue to be selective, high‑quality, well‑prepared businesses that can demonstrate strategic alignment with a buy‑and‑build strategy and engage effectively with investors are likely to attract strong interest. Over the last year, we’ve advised on a growing volume of private equity backed deals – with 56% of our transactions in 2025 involving private equity.

A greater emergence of thematic investing

Another emerging trend is the broader adoption of thematic investing approaches within private equity. While many lower mid-market houses still operate as multi-sector or generalist investors, an increasing number are developing refreshed thematic frameworks – typically centred around specific sector priorities – to guide where and how they invest.

Part of this shift reflects increasingly sophisticated origination functions. Taking a thematic approach means firms map entire value chains and develop a deeper understanding of sector dynamics, which in turn helps them to identify and pursue opportunities more proactively. There are similar advantages for acquisition planning – rather than simply waiting for an opportunity to come along, investors can build a clear view of where the most attractive assets sit, which businesses could play a role in a buy-and-build strategy, and how consolidation might unfold over time.

But this thematic approach is also increasingly important in helping private equity firms compete for the best assets in ‘hot’ spaces. If you’re pitching to a management team in a sector seeing high levels of private equity interest – fire and safety services is one example we’ve seen recently – the ability to demonstrate deep sector understanding and a track record in that area can be a genuine differentiator. In competitive processes, management teams and shareholders want confidence that an investor understands the drivers, risks and opportunities specific to their market, and can add value beyond capital.

New horizons

As the market builds momentum, there will be fresh opportunities for both private equity firms and those seeking investment.

As always, the key is readiness: having a clear understanding of your market position, your growth opportunities, and how acquisitions contribute to a wider value creation plan.

At FRP Corporate Finance, we support businesses and the private equity investor community at every stage of the investment journey – from helping investors identify new opportunities for their portfolios, to helping management teams through an investment process.