Private equity and venture capital (PE-VC) deal flow continues to be tepid as global macroeconomic situation makes private investors cautious.
PE-VC investments for May stood at $2.2 billion compared to $1.8 billion in May 2025, data from Venture Intelligence show. However, the deal count reduced from 92 in May 2025 to 82 in May 2026 and rise in high-value deals in May 2026 pushed up the overall tally.
While the number of early-stage deals grew from 33 in May 2025 to 40 in May 2026, the growth-stage deal flow slowed from 41 to 20 in the same period.
May 2026 saw mega ($100 million+) deals of $1.5 billion compared to 3 such deals valued at $0.6 billion in the same month last year.
The year has recorded 540 deals worth around $14.9 billion (YTD till June) compared to 1,327 deals aggregating to $37 billion in whole of 2025.
Global investment firm Carlyle’s investment in healthcare revenue cycle management platform Equalize ($300 million), North Star Energy’s raise of $300 million from British International Investment and Rapido’s $240 million raise from Accel and WestBridge were among major deals in May 2026.
The West Asia crisis has impacted IPOs, especially the new-age technology companies, with many of which are now either on hold or withdrawn, Arun Natarajan, founder and MD, Venture Intelligence, said. “This is having a cascading effect on the private markets too,” he added. The larger PE players are however continuing to buy at attractive valuations but the pre-IPO funding as dried up, he said.