In a year of uneven recovery for US private equity, the construction sector emerged as the standout performer in 2025, defying broader market stagnation in several key industries. According to PitchBook‘s inaugural 2025 US Private Equity Momentum Report, construction recorded an estimated 453 deals and $31.4 billion in capital deployed—marking significant growth over the 2021-2024 average of 299 deals and $25.9 billion.
The research report further noted that this surge positions construction as the most improved vertical, driven by subsector strength and macroeconomic tailwinds.
Construction technology (contech) was a particular bright spot, attracting an estimated $4.1 billion in PE investment in 2025—a sharp rise from $1.2 billion in 2024.
Engineering subsectors also contributed robustly, with $20.9 billion deployed compared to the prior four-year average of $18.5 billion.
PitchBook analysts attribute this momentum to several factors: the delayed effects of landmark legislation like the Inflation Reduction Act and the Infrastructure Investment and Jobs Act, which are finally spurring projects; a booming demand for datacenter infrastructure amid the AI evolution; modest reshoring of manufacturing; and falling interest rates that ease financing costs.
Private equity firms are increasingly adept at roll-ups in construction, combining assets to boost margins and achieve greater scale in a fragmented industry.
In contrast, other sectors lagged notably. Healthcare services saw reduced activity, with deal value for physician practice management companies dropping by roughly half from the 2022-2024 average.
Broader healthcare segments, consumer staples, consumer packaged goods, and parts of aerospace & defense also underperformed, reflecting caution amid regulatory pressures, consumer spending shifts, and geopolitical uncertainties.
The report from PitchBook highlights a clear divergence: while construction benefited from structural demand and policy support, cyclical or regulated sectors faced headwinds.
Exits in construction also soared, reaching an estimated $92.1 billion—tripling 2024 levels—bolstered by major IPOs.
As 2026 begins, construction’s resilience suggests sustained PE interest, particularly in tech-enabled and infrastructure-related plays.
For investors, this sector’s momentum underscores opportunities in areas tied to long-term megatrends like digitalization and energy transition.