| | | | | The Research Pitch | | June 21, 2025 | | Presented by Allvue | | | | | Medtech momentum: VC funding in the medtech sector reached $4.1 billion in Q1—the highest quarterly figure since early 2022—and PE activity also surged. Whole-body screening is a segment on the rise, but all eyes are on exits. Read a free preview.
PE's steady appetite: PE activity in the food & beverage CPG industry has remained healthy despite broader market caution. Our new research highlights the beverages segment, as investors prioritize resilient business models. Read a free preview.
Midyear outlooks: From July 8-23, our analyst teams will host a series of webinars that explore shifts in private market expectations. We'll cover US VC, PE, and credit, as well as regional discussions for EMEA and APAC. More information here. | | | | | | | | | | | Choose the right solution to scale your private equity strategy | | Emerging managers are under more pressure than ever in a competitive fundraising environment, while racing to scale, deliver value with fewer resources, and manage higher investor expectations. Allvue's Private Equity Buyer's Guide is your blueprint for building a lasting operational foundation without guesswork.
This free guide breaks down the major challenges facing growth-stage equity firms, the evolving tech landscape, and the right questions to ask when choosing a software partner. Learn how to streamline fund accounting, enhance investor communications, and future-proof your strategy, all while remaining lean and agile.
Whether you're still relying on spreadsheets, or looking to outgrow point solutions, this guide helps you invest in systems designed to scale with you.
Download now and lay the groundwork for your next stage of growth. | | | | | | | | | Middle market PE: Resilient deals, slowing exits, and a cloud of uncertainty | | Amid the Q1 debate between optimism for pro-business policies and concern around supply chain resiliency and tariffs, the middle market segment of US PE began the year with mixed trends. Deal count was up, and performance figures look good, but exit activity slowed. Middle market deal value reached $95 billion in Q1, a 9% decline from the previous quarter—but a 10% increase YoY. Deal volume climbed to 983 transactions, up both quarterly and annually.  This growth was especially concentrated in deals between $100 million and $500 million, with strength in the mid-Atlantic and West Coast regions helping offset softness in the South and Southeast. Founder-owned businesses also accounted for more than half of all deal flow, underscoring the appeal of PE tie-ups that provide capital and scale amid uncertain times. Middle market exit value fell sharply, down 14% QoQ and 9% YoY. Continuation funds and sponsor-to-sponsor deals are proving to be an important way to achieve distributions to LPs. Sponsor-to-sponsor exits made up over two-thirds of total exit value in Q1, bolstered by several large transactions. A notable bright spot was performance. Middle market managers reclaimed the top performance spot from megafunds, posting a rolling one-year IRR of 10.8% through September 2024—just ahead of their larger peers at 10.6%. The return to double digits is an important milestone and aids the case for middle market allocations amid a challenging fundraising environment. Looking ahead, we expect softer trends in middle market activity, as 2025 US recession odds reached nearly 50% in April and May, according to prediction markets. While those odds have recently declined below 30% in June, the earlier spike had an impact. With the tariff policy situation, business execs are having a tough time provisioning inventory and are delaying investments. This suggests businesses will be lowering forecasts and reducing spending—and recession fears may become self-fulfilling. If macroeconomic visibility improves, through trade policy clarity or easing interest rates, GPs are likely to press forward with the backlog of exits. If uncertainty persists, we expect PE to be more active sifting through the middle market for firms hindered by supply chain issues and needing capital for new investments. For much more data and analysis, download the free Q1 2025 US PE Middle Market Report. | | | | | | | Real assets funds reel in commitments | | Private real assets vehicles had a strong start to the fundraising year, receiving $52 billion in commitments in Q1, roughly half of 2024's full-year total. If this pace were maintained, 2025 would set a new high-water mark by a wide margin. Given the lower-liquidity environment, the numerator effect due to extended NAV curves, and other macroeconomic factors at play, this outcome appears unlikely. But there are major secular trends driving allocator appetite for real assets vehicles—namely, infrastructure funds—that we expect to continue to draw commitments to the space.  The $49 billion raised by infrastructure funds accounted for 95% of the total capital raised by the asset class in Q1. Opportunities tied to decarbonization have arisen from soaring energy demand and governments and companies putting resources toward the need for more energy without increasing fossil fuel usage. On the digital side of things, the majority of Q1's infrastructure capital went to funds that invest to some extent in telecom infrastructure or datacenters. The digitization of the global economy has led to rapid growth in this sector, and AI's proliferation and the resulting anticipated need for compute have attracted investors in droves. Alongside other themes such as deglobalization, these trends offer reasons for optimism around infrastructure's ability to keep up its fundraising momentum throughout 2025. For more data and analysis, download our free Q1 2025 Global Real Assets Report. Clients can access the full version of this and other LP-focused commentaries in our dedicated workspace. | | Best,
Anikka Villegas
Senior Analyst, Fund Strategies &
Sustainable Investing | | | | | | | | | | | | | | | |
Our insights and data featured in the press:
• A look at Nvidia's AI investments. [TechCrunch]
• Enterprise SaaS M&A is caught somewhere between a rebound and a rut. [Fortune]
• The trucking market is projected to reach about $3.4 trillion this year and is expected to grow to $4.9 trillion by 2034. [Axios Pro]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team.
| | | | | | | | | | | | | | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 410 Deals | 1807 People | 577 Companies | 5 Funds | | | | | | | | | | | | | | |
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