Global Private Equity Dealmaking Slows in Q2 Amid Tariff Uncertainty

London – Global private equity (PE) dealmaking began to slow down in the second quarter of 2025, a direct consequence of the recent uncertainty and turmoil surrounding tariffs.

According to Bain & Company, the value of buyout deals in April 2025 dropped by 24% compared to the average monthly value of the first three months of the year. Similarly, the number of deals fell by 22% during the same period. Bain & Company stated that “Dealmaking and exits are hit by market and economic headwinds triggered by recent turmoil over tariffs.”

This trend marks a stark contrast to the first quarter of the year, which saw a robust total deal value of $189 billion—the highest since Q2 2022 and roughly double the $95 billion recorded in Q1 2024. Bain noted that “The emerging weakness evident in Q2 is a direct consequence of the uncertainty injected into PE players’ long-term models by tariff volatility, just as investors’ confidence was beginning to return.”

While this slowdown is expected to persist in the short term, Bain & Co believes that opportunities still exist amidst the current uncertainties. Hugh MacArthur, chairman of Bain & Co’s global Private Equity practice, emphasized, “There’s nothing fundamentally broken in the market. Buyers and sellers can still transact, and history shows that strategic buyers with a strong M&A agenda remain active in turbulent times.” He added, “In any disruption there are winners and losers – and the best opportunities often come at the most extreme moments of uncertainty, something that’s still true in 2025.”

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