2025 Katten Middle-Market Private Equity Report
An informative report that explores how funds can unlock value amid the current volatile economic landscape.
A Transitional Year Tipping Between Opportunity and Uncertainty
Critical Data that Unlocks Value
Key Findings
Business services (67%), technology (56%), financial services (49%) and energy (47%) were seen as the industries of greatest opportunity for middle-market PE in 2025.
Additional areas to watch include health care (35%), manufacturing (37%) and sports (17%).
8 in 10 respondents expected exit opportunities to increase year-over-year — but 37% still believed the exit environment will present challenges.
Hurdles from 2024 could well persist: More than half of investors who said economic uncertainty and the regulatory and compliance environment challenged their organizations’ dealmaking in 2024 anticipated those issues will be equally or more difficult to navigate in 2025.
Discover the insights shaping the future of private equity.
Attorney Advertising. © 2025 Katten Muchin Rosenman LLP.
Coming off of the 2024 election, hope for a resurgent deal market in 2025 looked bright. US middle-market private equity (PE) investors forecasted increased opportunities for transactions. Rising volatility, though, is disrupting expectations, with dealmakers finding themselves up against uncertainty. As regulatory and fiscal obstacles arise, middle-market PE investors need guidance to successfully navigate opportunity and uncertainty.
Katten focuses on the “big picture” to provide clarity and direction. Committed to our clients’ business objectives, we examine critical data to provide the actionable insights that PE investors demand.
In late 2024, we fielded an online survey to draw on insights from more than 110 US middle-market PE investors, building on research from our 2023 survey. Given the recent complex dynamics and fast-moving developments, we conducted an additional flash survey of nearly 40 dealmakers in March to better understand whether expectations for 2025 had shifted due to uncertainty around tariffs and the economic outlook.
Led by Partners Kimberly Smith, Christopher Atkinson and J. David Washburn, our timely report offers critical guidance for dealmakers navigating 2025 and adjusting their strategies after a rebuilding year for US middle-market PE.
