PE/VC roundup 1H2026

A snapshot of PE/VC activity during 1H20256

According to the EY-IVCA monthly PE/VC roundup, 2Q2026 recorded the lowest quarterly private equity and venture capital investments in the past six years in value terms.

Investments

On a half-yearly basis, PE/VC investments in 1H2026 by value recorded a 36% year-on-year decrease and a 29% decrease compared to 2H2025 (US$20.5 billion in 1H2026 vs. US$31.8 billion in 1H2025 and US$29.0 billion in 2H2025). 1H2026 recorded 34% of last year’s total investment value. In terms of deal volume, 1H2026 recorded a decline of 18% compared to 1H2025 and a 19% decline compared to 2H2025 (604 deals in 1H2026 vs. 734 deals in 1H2025 and 742 deals in 2H2025).

Pure-play PE/VC investments (excluding real estate and infrastructure sectors) in 1H2026 (US$14.2 billion) were 29% lower compared to 1H2025 (US$20.0 billion) and 26% lower compared to 2H2025 (US$19.0 billion). These accounted for 69% of total PE/VC investments in 1H2026. Real estate and infrastructure asset class investments declined by 47% compared to 1H2025 and 37% compared to 2H2025 (US$6.3 billion in 1H2026 vs. US$11.8 billion in 1H2025 and US$10.0 billion in 2H2025).

1H2026 recorded 46 large deals (deals above US$100 million) aggregating to US$13.0 billion, compared to 69 large deals aggregating to US$22.9 billion in 1H2025—a 43% decline. Compared to 2H2025, the value of large deals was 29% lower, and the quarter had recorded 58 large deals aggregating to US$18.4 billion. In value terms, large deals accounted for 64% of overall PE/VC investments in 1H2026. The largest deal in 1H2026 was Blackstone, Bolt Ventures and others acquiring Royal Challengers Bengaluru for US$1.8 billion.

Growth investments led the pack with US$7.0 billion invested across 111 deals—a 6% year-on-year increase in value terms (US$6.6 billion across 121 deals in 1H2025) and 33% lower compared to 2H2025 (US$10.4 billion across 162 deals). This was followed by buyout investments at US$5.4 billion across 22 deals, reflecting a 12% year-on-year decline (US$6.2 billion across 26 deals in 1H2025). Start-up investments recorded a 22% year-on-year decline (US$5.3 billion across 396 deals in 1H2026 vs. US$6.9 billion across 372 deals in 1H2025).

Credit investments recorded US$2.2 billion across 47 deals vs. US$9.6 billion across 176 deals in 1H2025. PIPE deals were the lowest, with US$522 million across 28 deals vs. US$2.6 billion across 39 deals in 1H2025.

From a sector perspective, real estate was the top sector in 1H2026 (US$4.1 billion across 41 deals), 12% higher than US$3.7 billion across 94 deals in 1H2025. Technology secured the second rank with US$3.1 billion invested across 101 deals, 18% lower than the US$3.7 billion recorded across 87 deals in 1H2025. The financial services sector took the third spot, with US$3.0 billion recorded across 84 deals, a 27% year-on-year decrease (US$4.1 billion across 107 deals in 1H2025).

PE/VC trends in the data center and allied sectors:

PE/VC investments in data centers and allied sectors have witnessed a significant acceleration over the last five years, driven by the rapid growth in data consumption, cloud adoption, AI workloads and digital infrastructure requirements in India. Between 2021 and June 2026, the sector attracted approximatelyUS$45.3 billion in commitments and investments across 86 deals, with investment activity reaching an all-time high in 1H2026. Investment values increased from around US$0.8 billion in 2021 to US$33.3 billion in 1H2026 alone, while deal volumes expanded from 7 deals in 2021 to 25 deals in 1H2026. Notable deals include Blackstone-backed AirTrunk’s commitment for a US$30 billion investment in India, alongside major investments in EdgeConneX, Princeton Digital Group, Nxtra and CtrlS.

Of the total cumulative investments and commitments in data centers and allied sectors, data centers attracted US$41.9 billion across 21 deals (accounting for 93% of total investments). Telecom infrastructure emerged as the second-largest segment, attracting around US$2.6 billion across nine deals. While semiconductor investments accounted for a relatively modest US$459 million across 32 deals, they recorded the highest deal count.0020Technology-related investments totaled US$319 million across 24 deals.

Data center and allied sector investments were dominated by buyouts which accounted for nearly 86% of total invested and committed capital (US$38.8 billion across eight deals). Growth investments represented the second-largest category, contributing US$4.8 billion across 13 deals. Start-up investments accounted for the highest deal volume with 47 transactions, with US$643 million of capital deployed, reflecting strong investor appetite for emerging opportunities across AI infrastructure, cloud computing, semiconductors and data-center-enabling technologies. Credit investments and PIPE transactions recorded US$924 million across 12 deals and US$123 million across six deals respectively.

India's data center ecosystem is evolving into one of the most attractive investment themes for private capital. India is emerging as a strategic market for digital infrastructure as cloud providers, enterprises and AI platforms expand their computing footprint in the country. With over US$65 billion of announced hyperscaler investments, the sector is entering a period of sustained infrastructure buildout. For PE/VC investors, the opportunity extends beyond core data center assets to a broader ecosystem of telecom infrastructure, semiconductors, AI infrastructure and cloud-enablement technologies. With significant capacity additions expected over the next few years, increasing participation from global institutional investors and multiple monetization routes available, the sector is well-positioned to remain a key destination for PE/VC capital in India.

Exits

1H2026 recorded exits worth US$9.4 billion, 29% lower than in 1H2025 (US$13.1 billion) and 53% lower than in 2H2025 (US$19.8 billion). In terms of deal count, 1H2026 saw 95 exits, down 10% from 105 in 1H2025 and 38% from 153 in 2H2025. Deal values were unavailable for 28 exits in 1H2026.

Open market exits led with US$4.1 billion across 34 deals, accounting for 44% of total exit value in 1H2026. This representsa 3% year-on-year increase from US$4 billion across 32 deals in 1H2025, but was 19% lower than 2H2025 (US$5.1 billion across 39 exits). Strategic exits followed with US$3.4 billion across 29 deals, down 43% year-on-year from US$6.0 billion across 45 exit deals in 1H2025.

Secondary exits reached US$1.0 billion across 19 exits, a 36% decrease year-on-year (US$1.6 billion across 18 exits in 1H2025). Exits through IPO totaled US$801 million across 12 IPOs, down by 47% year-on-year from US$1.5 billion across eight deals in 1H2025.

The largest exit in 1H2026 was Macquarie sale of its toll road portfolio to Vici for US$1.6 billion.

By sector, infrastructure recorded the highest exit value at US$2.3 billion across five exits, followed by media and entertainment (US$1.5 billion) and financial services (US$1.2 billion).

Fundraise

1H2026 recorded total fundraises of US$21.2 billion across 48 fundraises compared to US$10.1 billion in 1H2025 and US$13 billion in 2H2025.

The largest fundraise of the half-year saw Bain Capital raising US$10.5 billion for its Asia Fund VI, surpassing its original target of US$7 billion.