Key Takeaways
- • Global private equity and venture capital funding declined to $22.54 billion in May 2026, down 12.7% from $25.80 billion in April, with deal round volume falling to 1,117 from 1,196 transactions month-over-month.
- • Year-to-date PE/VC funding through the first five months of 2026 totaled $161.48 billion, representing 24.6% growth compared to $129.54 billion for the same period in 2025, indicating recovery trajectory despite monthly volatility.
- • Technology, media, and telecommunications (TMT) sector dominated May activity with $7.42 billion across 373 rounds (32.9% of total investment), with application software subsector leading at 193 deals.
- • Bain Capital's $2.1 billion investment in Acrisure LLC represented the largest May funding round, followed by a $1.6 billion round led by Temasek Holdings and T. Rowe Price Investment Management for Hub International Ltd., both in the insurance sector.
- • May deal value contracted 21.0% compared to May 2025's $28.54 billion year-over-year, signaling sustained headwinds in capital deployment despite strong year-to-date performance.
Summary
Global private equity and venture capital funding activity declined in May 2026, reflecting the sector's continued monthly volatility amid broader market dynamics. According to S&P Global Market Intelligence data, total transaction value reached $22.54 billion across 1,117 funding rounds—a 12.7% decrease from April's $25.80 billion and a 21.0% contraction from May 2025's $28.54 billion. The month-over-month decline in both deal value and round volume marks the continuation of a cyclical pattern observed throughout early 2026, which has seen significant month-to-month fluctuations in deployment activity.
Despite May's weakness, year-to-date performance through the first five months of 2026 presents a materially different picture. Cumulative PE/VC funding reached $161.48 billion, substantially outpacing the $129.54 billion recorded in the same period of 2025—a 24.6% annual increase. This divergence suggests that while monthly volatility persists, underlying capital availability and deal flow momentum remain constructive on a longer-term basis, indicating that current funding declines may represent normal cyclicality rather than structural deterioration.
The TMT sector maintained its dominance in May, generating $7.42 billion in transaction value across 373 funding rounds and accounting for 32.9% of total global investment activity. Within TMT, application software remained the most active subsector with 193 deals, followed by system software with 35 transactions. However, volume across all 10 TMT subsectors declined relative to May 2025, signaling sector-wide moderation. The financial services sector finished second with $4.62 billion in May funding.
The two largest funding rounds in May underscored institutional appetite for established financial services platforms. Bain Capital LP led a $2.1 billion investment in Michigan-based insurance broker Acrisure LLC, with co-investment from Apollo Global Management Inc. and Gallatin Point Capital LLC; Acrisure plans to deploy proceeds toward developing its technology-enabled financial services platform. The second-largest round involved $1.6 billion in funding for Chicago-based insurance company Hub International Ltd., led by a consortium of Temasek Holdings, T. Rowe Price Investment Management, and Alpha Wave Global LP. These transactions reflect continued capital availability for digital transformation initiatives within the insurance and financial services verticals despite broader market consolidation.
Despite May's weakness, year-to-date performance through the first five months of 2026 presents a materially different picture. Cumulative PE/VC funding reached $161.48 billion, substantially outpacing the $129.54 billion recorded in the same period of 2025—a 24.6% annual increase. This divergence suggests that while monthly volatility persists, underlying capital availability and deal flow momentum remain constructive on a longer-term basis, indicating that current funding declines may represent normal cyclicality rather than structural deterioration.
The TMT sector maintained its dominance in May, generating $7.42 billion in transaction value across 373 funding rounds and accounting for 32.9% of total global investment activity. Within TMT, application software remained the most active subsector with 193 deals, followed by system software with 35 transactions. However, volume across all 10 TMT subsectors declined relative to May 2025, signaling sector-wide moderation. The financial services sector finished second with $4.62 billion in May funding.
The two largest funding rounds in May underscored institutional appetite for established financial services platforms. Bain Capital LP led a $2.1 billion investment in Michigan-based insurance broker Acrisure LLC, with co-investment from Apollo Global Management Inc. and Gallatin Point Capital LLC; Acrisure plans to deploy proceeds toward developing its technology-enabled financial services platform. The second-largest round involved $1.6 billion in funding for Chicago-based insurance company Hub International Ltd., led by a consortium of Temasek Holdings, T. Rowe Price Investment Management, and Alpha Wave Global LP. These transactions reflect continued capital availability for digital transformation initiatives within the insurance and financial services verticals despite broader market consolidation.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.