Published
14 minutes ago
on
May 28, 2026
| 15 views
-->
By
Julia Wendling
Graphics & Design
- Abha Patil
The following content is sponsored by New York Life Investment Management
Top 5 Reasons Private Equity Is Drawing Investor Interest in 2026
Private equity deal activity is rising fast, and investors are rethinking how they build portfolios. Private markets have shown low correlation to public markets and strong long term returns, making them a powerful diversification tool.
This infographic was created in partnership with New York Life Investment Management. It highlights the five key reasons investors are turning to private markets and why they are becoming a core part of modern portfolios.
1. Rising Private Equity Deal Activity
Private equity deal activity has grown sharply over the past decade. Investors are looking beyond public markets for new opportunities.
Deal value rose by nearly 30% from 2024 to 2025. It passed $1 trillion for the first time in 2025. This shows both higher demand and a larger market overall.
| Year | U.S. Private Equity Deal Value ($ billions) |
|---|---|
| 2010 | $290.2 |
| 2011 | $318.3 |
| 2012 | $374.8 |
| 2013 | $404.2 |
| 2014 | $482.6 |
| 2015 | $551.8 |
| 2016 | $468.9 |
| 2017 | $591.1 |
| 2018 | $658.7 |
| 2019 | $689.9 |
| 2020 | $631.4 |
| 2021 | $1,268.7 |
| 2022 | $953.3 |
| 2023 | $733.2 |
| 2024 | $847.8 |
| 2025 | $1,083.9 |
Growth in deal activity is only part of the story. Strong returns have also driven this shift.
2. Private Equity Has Outperformed Public Markets Over Time
Private equity has outperformed public markets over the last 20 years. It has delivered nearly double the total returns.
Since 2006, private markets have grown by about 600%. Public equity has grown by 336%. This gap has made private equity more attractive to investors.
| Date | Private Equity Index | Public Equity Index |
|---|---|---|
| 2006-11-30 | 100.0 | 100.0 |
| 2006-12-29 | 102.1 | 102.0 |
| 2007-01-31 | 105.1 | 103.2 |
| 2007-02-28 | 103.4 | 102.7 |
| 2007-03-30 | 105.1 | 104.6 |
| 2007-04-30 | 111.5 | 109.2 |
| 2007-05-31 | 114.8 | 112.3 |
| 2007-06-29 | 114.4 | 111.4 |
| 2007-07-31 | 112.0 | 108.9 |
| 2007-08-31 | 112.0 | 108.8 |
| 2007-09-28 | 116.5 | 114.0 |
| 2007-10-31 | 122.5 | 117.5 |
| 2007-11-30 | 116.9 | 112.7 |
| 2007-12-31 | 115.7 | 111.3 |
| 2008-01-31 | 106.0 | 102.8 |
| 2008-02-29 | 105.6 | 102.2 |
| 2008-03-31 | 105.5 | 101.2 |
| 2008-04-30 | 111.5 | 106.5 |
| 2008-05-30 | 114.4 | 108.1 |
| 2008-06-30 | 105.2 | 99.5 |
| 2008-07-31 | 103.9 | 97.1 |
| 2008-08-29 | 103.6 | 95.7 |
| 2008-09-30 | 88.8 | 84.3 |
| 2008-10-31 | 70.9 | 68.3 |
| 2008-11-28 | 63.5 | 63.9 |
| 2008-12-31 | 65.5 | 66.0 |
| 2009-01-30 | 60.5 | 60.2 |
| 2009-02-27 | 54.7 | 54.0 |
| 2009-03-31 | 59.1 | 58.1 |
| 2009-04-30 | 67.3 | 64.6 |
| 2009-05-29 | 71.8 | 70.5 |
| 2009-06-30 | 71.2 | 70.1 |
| 2009-07-31 | 78.0 | 76.1 |
| 2009-08-31 | 80.9 | 79.2 |
| 2009-09-30 | 85.6 | 82.4 |
| 2009-10-30 | 84.0 | 80.9 |
| 2009-11-30 | 88.4 | 84.2 |
| 2009-12-31 | 91.0 | 85.7 |
| 2010-01-29 | 87.1 | 82.2 |
| 2010-02-26 | 88.8 | 83.4 |
| 2010-03-31 | 94.4 | 88.5 |
| 2010-04-30 | 96.5 | 88.5 |
| 2010-05-31 | 87.6 | 80.0 |
| 2010-06-30 | 84.1 | 77.3 |
| 2010-07-30 | 92.4 | 83.6 |
| 2010-08-31 | 88.4 | 80.5 |
| 2010-09-30 | 99.8 | 88.0 |
| 2010-10-29 | 104.0 | 91.2 |
| 2010-11-30 | 102.8 | 89.3 |
| 2010-12-31 | 110.6 | 95.8 |
| 2011-01-31 | 112.5 | 98.0 |
| 2011-02-28 | 117.6 | 101.4 |
| 2011-03-31 | 119.0 | 100.4 |
| 2011-04-29 | 126.2 | 104.7 |
| 2011-05-31 | 124.1 | 102.5 |
| 2011-06-30 | 122.2 | 100.9 |
| 2011-07-29 | 118.7 | 99.1 |
| 2011-08-31 | 110.2 | 92.1 |
| 2011-09-30 | 98.7 | 84.1 |
| 2011-10-31 | 112.1 | 92.8 |
| 2011-11-30 | 109.6 | 90.6 |
| 2011-12-30 | 108.5 | 90.5 |
| 2012-01-31 | 115.2 | 95.1 |
| 2012-02-29 | 122.2 | 99.7 |
| 2012-03-30 | 123.7 | 101.0 |
| 2012-04-30 | 123.8 | 99.8 |
| 2012-05-31 | 113.6 | 91.2 |
| 2012-06-29 | 119.0 | 95.9 |
| 2012-07-31 | 119.9 | 97.1 |
| 2012-08-31 | 124.3 | 99.6 |
| 2012-09-28 | 128.0 | 102.3 |
| 2012-10-31 | 126.0 | 101.6 |
| 2012-11-30 | 126.4 | 102.9 |
| 2012-12-31 | 129.0 | 104.8 |
| 2013-01-31 | 136.6 | 110.2 |
| 2013-02-28 | 137.5 | 110.4 |
| 2013-03-29 | 143.0 | 112.9 |
| 2013-04-30 | 147.4 | 116.5 |
| 2013-05-31 | 148.4 | 116.5 |
| 2013-06-28 | 145.6 | 113.7 |
| 2013-07-31 | 157.1 | 119.7 |
| 2013-08-30 | 155.1 | 117.1 |
| 2013-09-30 | 164.7 | 123.0 |
| 2013-10-31 | 172.9 | 127.8 |
| 2013-11-29 | 177.8 | 130.1 |
| 2013-12-31 | 183.4 | 132.8 |
| 2014-01-31 | 179.0 | 127.9 |
| 2014-02-28 | 190.5 | 134.3 |
| 2014-03-31 | 189.0 | 134.5 |
| 2014-04-30 | 190.5 | 135.9 |
| 2014-05-30 | 194.9 | 138.5 |
| 2014-06-30 | 197.3 | 141.0 |
| 2014-07-31 | 194.2 | 138.8 |
| 2014-08-29 | 200.2 | 141.8 |
| 2014-09-30 | 195.7 | 138.0 |
| 2014-10-31 | 196.8 | 138.9 |
| 2014-11-28 | 202.7 | 141.6 |
| 2014-12-31 | 200.9 | 139.4 |
| 2015-01-30 | 197.7 | 136.8 |
| 2015-02-27 | 211.9 | 144.9 |
| 2015-03-31 | 211.1 | 142.6 |
| 2015-04-30 | 210.9 | 145.9 |
| 2015-05-29 | 214.8 | 146.4 |
| 2015-06-30 | 210.7 | 143.0 |
| 2015-07-31 | 214.2 | 145.6 |
| 2015-08-31 | 198.4 | 136.0 |
| 2015-09-30 | 193.6 | 130.9 |
| 2015-10-30 | 204.7 | 141.3 |
| 2015-11-30 | 202.0 | 140.6 |
| 2015-12-31 | 200.8 | 138.1 |
| 2016-01-29 | 185.0 | 129.9 |
| 2016-02-29 | 186.3 | 128.9 |
| 2016-03-31 | 200.9 | 137.7 |
| 2016-04-29 | 203.6 | 139.8 |
| 2016-05-31 | 206.9 | 140.6 |
| 2016-06-30 | 202.8 | 139.1 |
| 2016-07-29 | 211.3 | 144.9 |
| 2016-08-31 | 212.3 | 145.1 |
| 2016-09-30 | 215.8 | 145.8 |
| 2016-10-31 | 209.9 | 143.0 |
| 2016-11-30 | 212.5 | 145.1 |
| 2016-12-30 | 217.0 | 148.5 |
| 2017-01-31 | 223.4 | 152.1 |
| 2017-02-28 | 229.6 | 156.3 |
| 2017-03-31 | 234.6 | 158.0 |
| 2017-04-28 | 242.2 | 160.3 |
| 2017-05-31 | 246.6 | 163.7 |
| 2017-06-30 | 248.0 | 164.4 |
| 2017-07-31 | 257.9 | 168.3 |
| 2017-08-31 | 258.8 | 168.5 |
| 2017-09-29 | 268.0 | 172.3 |
| 2017-10-31 | 274.2 | 175.6 |
| 2017-11-30 | 282.7 | 179.4 |
| 2017-12-29 | 288.0 | 181.8 |
| 2018-01-31 | 309.3 | 191.4 |
| 2018-02-28 | 299.3 | 183.5 |
| 2018-03-30 | 294.7 | 179.5 |
| 2018-04-30 | 296.5 | 181.5 |
| 2018-05-31 | 301.1 | 182.7 |
| 2018-06-29 | 297.3 | 182.6 |
| 2018-07-31 | 302.1 | 188.3 |
| 2018-08-31 | 308.8 | 190.6 |
| 2018-09-28 | 308.1 | 191.7 |
| 2018-10-31 | 282.3 | 177.6 |
| 2018-11-30 | 283.9 | 179.6 |
| 2018-12-31 | 260.5 | 166.0 |
| 2019-01-31 | 288.8 | 178.9 |
| 2019-02-28 | 296.4 | 184.3 |
| 2019-03-29 | 299.1 | 186.7 |
| 2019-04-30 | 308.7 | 193.3 |
| 2019-05-31 | 293.8 | 182.1 |
| 2019-06-28 | 308.7 | 194.1 |
| 2019-07-31 | 311.2 | 195.1 |
| 2019-08-30 | 301.3 | 191.1 |
| 2019-09-30 | 303.0 | 195.2 |
| 2019-10-31 | 311.0 | 200.1 |
| 2019-11-29 | 322.9 | 205.7 |
| 2019-12-31 | 333.2 | 211.9 |
| 2020-01-31 | 331.4 | 210.6 |
| 2020-02-28 | 305.8 | 192.8 |
| 2020-03-31 | 259.6 | 167.3 |
| 2020-04-30 | 295.6 | 185.5 |
| 2020-05-29 | 315.3 | 194.5 |
| 2020-06-30 | 329.3 | 199.7 |
| 2020-07-31 | 347.9 | 209.2 |
| 2020-08-31 | 368.6 | 223.2 |
| 2020-09-30 | 362.7 | 215.5 |
| 2020-10-30 | 355.7 | 208.9 |
| 2020-11-30 | 390.4 | 235.6 |
| 2020-12-31 | 409.6 | 245.6 |
| 2021-01-29 | 408.3 | 243.1 |
| 2021-02-26 | 415.7 | 249.4 |
| 2021-03-31 | 422.3 | 257.7 |
| 2021-04-30 | 439.8 | 269.7 |
| 2021-05-31 | 444.3 | 273.5 |
| 2021-06-30 | 452.0 | 277.6 |
| 2021-07-30 | 456.5 | 282.6 |
| 2021-08-31 | 463.0 | 289.6 |
| 2021-09-30 | 440.3 | 277.6 |
| 2021-10-29 | 449.2 | 293.3 |
| 2021-11-30 | 433.9 | 286.9 |
| 2021-12-31 | 447.4 | 299.2 |
| 2022-01-31 | 417.9 | 283.3 |
| 2022-02-28 | 415.7 | 276.2 |
| 2022-03-31 | 421.4 | 283.7 |
| 2022-04-29 | 399.5 | 260.2 |
| 2022-05-31 | 404.7 | 260.4 |
| 2022-06-30 | 377.3 | 237.8 |
| 2022-07-29 | 400.2 | 256.7 |
| 2022-08-31 | 388.8 | 246.0 |
| 2022-09-30 | 353.4 | 223.1 |
| 2022-10-31 | 379.6 | 239.1 |
| 2022-11-30 | 395.6 | 255.7 |
| 2022-12-30 | 376.0 | 244.9 |
| 2023-01-31 | 412.4 | 262.2 |
| 2023-02-28 | 408.7 | 255.9 |
| 2023-03-31 | 418.0 | 263.8 |
| 2023-04-28 | 424.1 | 268.4 |
| 2023-05-31 | 419.9 | 265.8 |
| 2023-06-30 | 448.3 | 281.8 |
| 2023-07-31 | 464.1 | 291.3 |
| 2023-08-31 | 455.0 | 284.3 |
| 2023-09-29 | 436.7 | 272.1 |
| 2023-10-31 | 424.6 | 264.2 |
| 2023-11-30 | 468.7 | 288.9 |
| 2023-12-29 | 489.6 | 303.1 |
| 2024-01-31 | 499.6 | 306.8 |
| 2024-02-29 | 530.7 | 319.8 |
| 2024-03-29 | 545.5 | 330.1 |
| 2024-04-30 | 516.2 | 317.8 |
| 2024-05-31 | 533.7 | 332.0 |
| 2024-06-28 | 537.8 | 338.7 |
| 2024-07-31 | 547.9 | 344.7 |
| 2024-08-30 | 556.4 | 353.8 |
| 2024-09-30 | 565.6 | 360.3 |
| 2024-10-31 | 552.6 | 353.1 |
| 2024-11-29 | 594.2 | 369.4 |
| 2024-12-31 | 561.6 | 359.7 |
| 2025-01-31 | 585.4 | 372.4 |
| 2025-02-28 | 586.2 | 369.7 |
| 2025-03-31 | 567.7 | 353.3 |
| 2025-04-30 | 587.2 | 356.4 |
| 2025-05-30 | 613.5 | 377.5 |
| 2025-06-30 | 644.1 | 393.8 |
| 2025-07-31 | 652.0 | 398.9 |
| 2025-08-29 | 661.0 | 409.3 |
| 2025-09-30 | 677.6 | 422.4 |
| 2025-10-31 | 680.4 | 430.9 |
| 2025-11-28 | 684.0 | 432.1 |
| 2025-12-31 | 699.0 | 435.6 |
The difference becomes even clearer during market stress. Private equity tends to hold up better when markets decline.
3. Private Equity’s Drawdown Advantage
Private equity has shown stronger performance during downturns. It has outperformed public markets by an average of 8 percentage points during crises.
| Crisis | Private Equity Performance | Public Equity Performance | Private Equity Outperformance (ppts) |
|---|---|---|---|
| Dotcom Crash (June 2000 to March 2003) | -16% | -18% | 2 |
| Global Financial Crisis (December 2007 to March 2010) | -6% | -9% | 3 |
| Eurozone Crisis (March 2010 to March 2012) | 16% | 7% | 9 |
| COVID-19 Outbreak (December 2019 to September 2020) | 18% | 2% | 16 |
| Return of Inflation (December 2021 to December 2022) | -8% | -18% | 10 |
| Average | 1% | -7% | 8 |
On average, private equity posted a small positive return of 1% in these periods. Public equity saw an average loss of 7%.
This resilience adds stability to portfolios. It also highlights another key benefit of private markets.
4. Diversification Benefits: Low Correlation to Public Markets
Private equity in the lower middle market has outperformed large and mega cap funds since 1986. It also shows lower correlation to the S&P 500. This makes it a useful tool for diversification.
| Firm Size | Performance Since 1986 (%) |
|---|---|
| Large and Mega | 12.9% |
| Lower Middle Market | 17.5% |
Private markets also give access to new areas of growth. Many of these opportunities are not available in public markets.
5. A Central Role in the AI Revolution
Private markets play a key role in the growth of AI. They fund early stage companies and support large scale infrastructure.
Investment in information processing equipment and software continues to grow. Private capital helps drive this expansion.
As AI reshapes the economy, private markets help finance and capture this growth.
A New Frontier for Portfolio Growth
More investors now see private equity as a core allocation, as it has evolved from a niche strategy into a key pillar of modern portfolio construction.
Private markets are taking a larger role in portfolios, offering investors new exposures, access to long-term growth, and the potential for enhanced returns and diversification beyond traditional public markets.
Explore more insights from New York Life Investments
You may also like
-
Investor Education3 months ago
5 Ways Women Are Reshaping Investing
Women investors are redefining the investment landscape, driven by entrepreneurial momentum, expanding wealth, and evolving generational influence.
Subscribe
Please enable JavaScript in your browser to complete this form.Join 375,000+ email subscribers: *Sign Up