Private Equity Drives M&A Recovery with $47B in August Deals

Private equity firms took center stage in August 2025's merger and acquisition activity, accounting for approximately 47% of deals valued at $100 million or more, a dramatic increase from just 8% in July, according to EY's latest M&A insights report.

The surge in PE activity comes as firms face pressure to exit aging portfolio companies, with over 12,000 assets currently held and nearly a third retained for more than six years. Almost half of PE firms are now willing to accept a 6-10% discount to facilitate exits.

Technology sector deals led the activity with $55 billion in transaction value, despite a slight decline in deal volume. The telecommunications sector rebounded strongly with $24 billion in deals after no activity in the previous year.

'PE's increased participation reflects a shift in deal dynamics as firms seek to deploy accumulated capital and manage portfolio companies,' noted an EY analyst. 'Rate cuts could accelerate divestments and unlock deal flow in the second half of 2025.'

Notable transactions include ongoing high-value deals in consumer products, infrastructure, and power utilities sectors. The infrastructure sector saw deal values more than double to $18 billion despite unchanged volume.

Market sentiment for 2025 M&A activity is at a five-year high, with more than half of midsize businesses expecting a strong market, according to Citizens Bank's annual survey.