DC Advisory's US Private Equity Mid-Market Monitor: H1 2025
Date
October 08, 2025 • 5 min read
DC Advisory presents our latest US Private Equity Mid-Market Monitor, discussing the latest trends and themes impacting the private equity market across various sectors within the US amid ongoing uncertainty and emerging optimism.
- Macroeconomic and geopolitical conditions may be stabilizing, supported by improved credit terms, a September Fed rate cut, and early signs of a broader easing cycle
- Private equity firms face continued pressure to return capital, driving increased sell-side activity and narrowing valuation gaps, with Infrastructure funds emerging as active and influential buyers
- The anticipated ‘herd effect’ is now playing out, as firms that prepared early are bringing assets to market to capitalize on a less crowded landscape and increased buyer attention
- Traditional auctions are slowly returning, though fast-track and pre-emptive processes remain common as sellers adapt to a shifting buyer universe
“For prospective sellers, the critical lesson is to prepare early. Time and again, experience has shown that those who act ahead of the recovery window are best positioned to capitalize, while waiting for complete certainty has led many to miss prime opportunities.”
Bill Kohr, US CEO, DC Advisory
Since the US election, the market has experienced varying levels of uncertainty. More recently, however, there have been clear signs of momentum as the valuation gap narrows and more assets attract buyer attention. While tariff policies and the evolving fiscal agenda have presented new challenges, historical precedent suggests these periods of volatility can spark some of the most attractive investment opportunities. Private equity firms are still holding substantial dry powder and face pressure to sell and return capital. They are adapting their methods to remain well- positioned to act quickly.
Optimism amidst ongoing uncertainty
Even as fiscal headwinds persist, investors can act against the uncertainty. The ongoing narrowing of the valuation gap, the influx of high-quality assets, and a receptive market, signal opportunity for players who remain positive and agile. These uncertain times have historically opened the door to compelling investment prospects for those willing to move decisively.
Preparation remains crucial
We continue to see private equity participants focus on premium assets, particularly in sectors demonstrating resilience against policy and tariff fluctuations. With aging dry powder and mounting time pressure, private equity firms are rethinking strategies and embracing creative monetization. Our advice for sellers remains steadfast: effective preparation well before windows of opportunity open will be key to maximizing value in this dynamic environment.
Predicting future activity is an art and not a science and this analysis is not scientific. It is informed judgement – much like the best M&A advice.
This publication has been prepared solely for information purposes and is not intended to function as a “research report.” In particular, this means that it is not intended, nor does it contain sufficient information, to make a recommendation as to the advisability of investment in, or the value of, any security.
Additionally, this publication does not constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of any offer to buy, or any recommendation with respect to, any securities. You should not base any investment decision on this publication; any investment involves risks, including the risk of loss, and you should not invest without speaking to a financial advisor.
For additional important information regarding this publication, please see our Insights & Publications disclaimer >
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