KPMG’s latest Pulse of Private Equity Q1’26 study has indicated that PE investors are growing more selective amid geopolitical tensions, yet capital is steadily channeling into critical infrastructure supporting artificial intelligence, the energy transition, and transportation networks. Released in May 2026, the report shows global PE deal activity reached $436 billion across 4,168 transactions in the first quarter, even as broader market caution persisted due to ongoing conflicts and economic volatility.
KPMG pointed out that while overall activity softened quarter-over-quarter and trailing 12-month totals dipped slightly, certain high-conviction sectors outperformed 2025 levels.
Energy and natural resources captured $93 billion, clean and climate tech drew $50 billion, and infrastructure and logistics secured $39 billion—marking the only tracked industries ahead of prior-year paces.
In contrast, technology, media, and telecom (TMT) investments totaled $127 billion but fell short of 2025 momentum.
The surge reflects private equity’s strategic pivot toward the AI ecosystem. Investors are prioritizing assets essential for powering data centers and supporting explosive AI growth, including next-generation energy generation and digital infrastructure.
KPMG professionals describe infrastructure as the “new mega-buyout category,” with assets tied to energy, data centers, and logistics drawing the largest pools of capital through consortium deals.
These “must-own” investments emphasize scarcity and strategic importance alongside financial returns.
A standout example is the $41 billion take-private of US-based clean energy infrastructure provider AES by a consortium led by Global Infrastructure Partners and EQT—one of the quarter’s largest deals.
Other notable transactions included the $9.2 billion secondary buyout of Poland’s InPost logistics firm and the $5.2 billion acquisition of Singapore-based ST Telemedia Global Data Centers, underscoring the global appetite for AI-adjacent infrastructure.
Regionally, the Americas led with $247 billion, driven by U.S. energy deals, while Europe, Middle East, and Africa (EMA) recorded $154 billion—including $24 billion in infrastructure and logistics.
Asia-Pacific contributed $26 billion, with data center plays prominent despite regional energy supply challenges. Transportation assets, such as aircraft leasing and logistics networks, also benefited from government funding tailwinds, providing stability amid uncertainty.
Fundraising remained subdued at $373 billion globally—the lowest quarterly figure in years—while exits reached $294 billion.
Yet dry powder levels stayed elevated, enabling sponsors to pursue quality assets with strong growth stories and pricing power.
KPMG’s Tilman Ost, Global Private Equity Advisory Leader for EMA, noted sustained momentum in infrastructure and transport, aided by public-sector support.
Donald Zambarano, U.S. Head of Private Equity at KPMG, highlighted how consortiums are targeting resilient, thematic plays where AI demand creates long-term value.
Business services also emerged as an attractive secondary target, but the report’s core message is clear: private equity is doubling down on infrastructure that underpins AI, decarbonization, and modern mobility.
As geopolitical headwinds linger, investors are betting that these foundational sectors offer defensive growth and enduring returns in an uncertain landscape. The Q1 trends signal a maturing PE market focused on strategic, high-impact deployments rather than volume-driven activity.