BDO’s 2025 Private Equity Survey reveals nearly half of fund managers and operating partners (41 percent) are prioritizing dry powder for new platform investments as private equity looks to rebound from a down period in M&A activity.
To understand the impacts of tariffs on private equity deal strategies and priorities in the second half of 2025 and into 2026, BDO USA polled 435 fund managers and operating partners — 335 before the Trump Administration’s “Liberation Day,” and an additional 100 after “Liberation Day” to see how their outlook changed.
While geopolitical tensions and macroeconomic headwinds remain, BDO’s research shows PE firms are proactively preparing to transact when the time is right.
Funds aim to deploy dry powder to revive deals: 41 percent of funds are prioritizing their dry powder for new platform investments while 27 percent are focusing on distressed investments.
Pressure to exit builds as holding periods
