SPS Deal Flow Snapshot 2025: Private Equity in a Cautious Market executive summary
The June 2025 Deal Flow Snapshot highlights the cautious state of private equity sourcing. While origination volumes show modest recovery, conversion rates are at historic lows, holding periods are lengthening, and time-to-close continues to climb. Firms that succeed are leveraging sharper investment criteria, sector focus, and real-time pipeline monitoring to maintain deal velocity. Precision and conviction have become the defining advantages in today’s selective deal-making environment.
Key trends:
- Origination vs. close gap: Private equity firms are originating deals steadily but closing fewer, with conversion rates dropping to 25%.
- Exit gridlock: Median holding periods have risen above five years, with significant sector variance affecting sourcing cycles.
- Slower velocity: Median time-to-close reached 231 days in Q1 2025, disproportionately affecting larger transactions.
