Medline CEO Jim Boyle celebrates with others as medical supplies giant Medline (MDLN) holds its IPO at the Nasdaq stock market site in Times Square in New York City, USA, on December 17, 2025.
Shannon Stapleton Reuter
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After years of waiting for valuations to recover, private equity is finally taking the pill and closing more deals at lower prices.
The number of global private equity exits rose 5.4% last year to 3,149, according to data from S&P Global Market Intelligence. However, the total value of these transactions fell 21.2% year-on-year to $412.1 billion, according to the data.
The move is emblematic of an industry under pressure to monetize aging assets and one that is finally recalibrating its expectations. The challenge dates back to 2022. S&P500 It plunged 19% amid rising interest rates. According to the Center for Economic Policy Research, many PE firms are choosing not to write down the value of their portfolio companies, creating a gap in payments with potential buyers through sales or IPOs.
Due to years of stagnation in withdrawals, tens of thousands of companies still have backlogs and have not been able to find a way out. As a result, the amount of cash returned to private equity fund investors, known as limited partners or LPs, is decreasing. As a result, LPs have become reluctant to pour more capital into private equity. According to S&P, funding in 2025 fell 11% to $490.81 billion, marking the second consecutive annual decline.
This change has made private equity firms even more reluctant to commit capital to new deals. US private equity deal value increased in the first half of last year, but the number of implementations remained flat. According to the PwC report, this means that “while there have been concentrated successes in executing large trades, overall trading activity has remained stagnant.”
There are also signs that this large group of funds within private equity is benefiting in terms of monetization. Blackstone, which released its financial results last week, announced that its private equity portfolio generated $10.8 billion in realizations from exits in the fourth quarter. This was the highest quarterly total this year, with $33.9 billion worth of realizations, according to the company’s investor presentation.
above black stone “We’re starting to see the acceleration of realization,” said Jonathan Gray, president and chief operating officer, in an earnings conference call. Michael Che, the company’s chief financial officer, added: “In terms of net realizations, the backdrop is becoming more constructive…Overall, our reserve value and realizability are strong and we are very optimistic about our multi-year outlook.”
Blackstone and a consortium of peers were able to acquire a medical supplies company. medline Listed in December – largest private equity-backed IPO listing in U.S. history
Medline, which makes and sells everything from exam gloves to wound care and protective clothing, has raised more than $7 billion in acquisitions that expand its scale. The stock is up nearly 30% since its debut, boding well for more IPOs from private equity-backed companies.
Several more private equity firms are scheduled to report earnings this week. KKR is scheduled to release fourth-quarter numbers on Thursday. carlyle is scheduled for Friday. apollo The results will be announced on February 9th.
