Tariffs are taking their toll on Private Equity, too

After an upbeat start to the year which saw P/E deal value in Q1 climbing to the highest level since the second quarter of 2022, the mood soured quickly.

As Bain & Company reports in their Midyear report:

"Uncertainty about tariffs, which had started to swirl in February, was amplified by the policy announcements of April 2, triggering volatility across global capital markets.

Although the full impact on dealmaking isn’t yet clear, given the lead times to bring deals to fruition, there are signs that the second quarter may see a slowdown. The value of deals announced in April was 24% below the monthly average for the first quarter of 2025, while deal count was down 22%.

The slowdown on the entry side is mirrored on the exit side. The most immediate and visible impact was seen in the IPO channel, where the already subdued market for initial public offerings essentially shut early in the second quarter, with offerings postponed or canceled amid the tariff turmoil."