Key Takeaways
- • CBIZ Private Equity Advisory's Q3 2026 PE Market Update says sponsors are adjusting to higher financing costs, greater selectivity and shifting competition in deploying capital.
- • The M&A perspective, titled "Underwriting the New Normal," argues that financing economics increasingly differ by borrower quality and that higher borrowing costs are raising the hurdle for attractive investments.
- • Growing interest in the middle market is reshaping competition among private equity buyers, according to the report.
- • The Deal Metrics Update describes modestly improving but highly selective deal activity, concentrated exit liquidity, and a fundraising environment where capital increasingly favors scale.
Summary
CBIZ Private Equity Advisory has published its Q3 2026 Private Equity Market Update, which examines how private equity sponsors are navigating the current market. According to the publication, higher financing costs, greater selectivity and shifting competition are shaping where and how capital is being deployed.
The firm's M&A Market Perspective, titled "Underwriting the New Normal," addresses how financing economics increasingly vary by borrower quality. The piece argues that higher borrowing costs are raising the bar for attractive investments and that growing interest in the middle market is reshaping competition among buyers.
The Deal Metrics Update, featuring the sections "Modest Gains on Steady Ground" and "The Liquidity Divide," provides a data-driven view of deal activity. It characterizes deal activity as modestly improving but highly selective, notes that exit liquidity is concentrated, and describes a fundraising environment in which capital increasingly favors scale.
The publication is a summary with a link to the full report. The source text does not include specific deal values, fund sizes or quantitative metrics beyond these qualitative characterizations, so readers seeking underlying figures would need to consult the full Private Equity Market Update.
The firm's M&A Market Perspective, titled "Underwriting the New Normal," addresses how financing economics increasingly vary by borrower quality. The piece argues that higher borrowing costs are raising the bar for attractive investments and that growing interest in the middle market is reshaping competition among buyers.
The Deal Metrics Update, featuring the sections "Modest Gains on Steady Ground" and "The Liquidity Divide," provides a data-driven view of deal activity. It characterizes deal activity as modestly improving but highly selective, notes that exit liquidity is concentrated, and describes a fundraising environment in which capital increasingly favors scale.
The publication is a summary with a link to the full report. The source text does not include specific deal values, fund sizes or quantitative metrics beyond these qualitative characterizations, so readers seeking underlying figures would need to consult the full Private Equity Market Update.
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