Prospera Executive

Amid the negative headlines, private equity continues to deliver strong returns and remains well-positioned to drive long-term value. Encouraging perspective in this Financial Times piece on why the outlook may be brighter than many think.

Blackstone President and COO Jon Gray confirmed that the firm’s earlier dealmaking slowdown has now “been put behind us,” signaling a strong resurgence in M&A and credit activity. PitchBook notes Blackstone is well‑positioned for accelerating net realizations and a more active deal pipeline heading into the second half of 2025.

PitchBook reports that buyers are increasingly flagging weak reporting and forecasting during diligence, leading to lower valuations or delayed deals. This isn’t just a finance issue, it impacts the outcome of the entire investment.

Deals are starting to move again, but the playbook is shifting. Firms are getting creative and finding ways to create value earlier, rethink exits, and lean into growth even when the market isn’t handing it to them.

KKR’s latest article looks at how private equity firms can still achieve strong exits in a challenging market by planning early, focusing on operational improvement, and staying flexible. They share examples like Bountiful, Kokusai Electric and Minnesota Rubber to show how adjusting the exit path, whether through IPO, sale or secondary can help realise value even when conditions are tough.

Philipp Freise, Co-Head of European Private Equity at KKR, shares how the firm is putting its $8bn European fund to work by focusing on long-term value through hands-on operational support. He talks about backing management teams to scale, embedding ESG into every stage of the investment process, and adapting strategies to reflect the realities of each local market. With a particular focus on sectors like healthcare and tech-enabled services, it’s a useful glimpse into how top-tier PE firms are evolving in today’s more cautious and complex environment.

Private equity found its footing again last year. After a tough stretch, deal volume picked up and distributions finally outpaced contributions, giving investors fresh confidence. While fundraising remained challenging, many firms shifted focus from financial engineering to real operational value.

Blackstone is making a big push into Europe, planning to grow its footprint from $350B to $500B over the next decade. They're betting on a shift in the region, with more investment in infrastructure, defence and credit.

Boston Consulting Group (BCG)'s latest article shows how top software companies balance growth and profitability, which is key for long-term value. It's a reminder that the best leaders aren’t just growth-focused; they know how to drive efficiency too. Hiring leaders who can deliver both is essential to hitting this benchmark and unlocking real returns.

Clearlake Capital Group, New Mountain Capital and Mubadala are all among firms investing in healthcare businesses utilizing AI.