PE Fund Due Diligence in a Concentrated Deal Market
PE Fund Due Diligence in a Concentrated Deal Market By: Nitin Kumar March 12, 2026 Share: Global private equity activity has rebounded in value but not in volume. According to the 2025 Global Private Markets Report by McKinsey, global buyout value reached about $1.8 trillion, a sharp increase of almost 20% from the previous year, although the number of deals was low. KPMG also stated that total PE investment in 2025 was about $2.1 trillion, a four-year high, led mainly by bigger deals and not by the number of deals. Reinforcing the growing importance of rigorous PE fund due diligence to safeguard concentrated capital and validate return assumptions. This shift in capital allocation to fewer, but bigger, deals have a profound effect on risk management. With bigger equity checks and the cost of capital still higher than the pre-2022 levels, the focus is on the accuracy of underwriting. In this scenario, investment in PE fund due diligence is no...