Private equity firms have four primary channels to attract deal flow: bankers with deals, advisors with relationships, privately-held companies, and companies currently owned by other private equity firms.
While the first three are the most common, our data shows that acquisitions of companies owned by other private equity firms (PE-PE) is a notable source of deal flow.
In the last 12 months, 484 platform investments were made between private equity firms.
After a strong 2024 year-end push that peaked at 53 PE-PE transactions in October, monthly volumes slowed to roughly half that pace in Feb. 2025. Activity has since stabilized around 30 PE-PE deals per month. This reduction in PE-PE deal volume is consistent with overall private equity acquisition trends for 2025, not just PE-PE deals.
These PE-PE transactions represent 10-25% of total PE platform acquisitions (see graph below).
Note: Increases in July and August are due to the decline in overall PE acquisitions in these months. There were fewer total PE deals, the denominator in the ratio presented in the graph above.
Interestingly, the 484 investments from the graph above simultaneously represent 664 exits from other private equity firms. The difference is accounted for by portfolio companies with multiple concurrent PE owners upon exit. So, while PE-to-PE deals represent a viable source of deal flow for PE acquisitions, this channel also provides significant liquidity to PE firms upon exit.
For firms interested in growing this channel, we ranked the top industries where PE-PE deals are taking place.
Industries of Interest
1. Technology & Software
- SaaS / Cloud Platforms
- AI, Data Analytics, and Machine Learning
- Cybersecurity & Risk Management
- It Infrastructure, Managed Services, and FinTech Solutions
- ERP, CRM, and Workflow Automation
2. Healthcare & Life Sciences
- MedTech & Biologics
- Specialty Pharmacy & Infusion Therapy
- Revenue Cycle Management (RCM) & Healthcare IT
- Veterinary & Animal Health
- Pharma & Contract Manufacturing
3. Industrial Services & Engineering
- Construction, Maintenance & Repair
- Power Generation & Infrastructure
- HVACR, Facility & Environmental Services
- Aerospace & Defense Components
4. Business Services & Professional Solutions
- Consulting, Compliance & Outsourcing
- HRTech & Workforce Management
- LegalTech, Accounting & Advisory
- ESG, Audit & Risk Advisory
5. Consumer & Retail
- Food, Beverage & Restaurant Franchises
- Apparel, Jewelry & Lifestyle Brands
- Pet Food & Specialty Consumer Products
- E-Commerce & Marketplace Operators
6. Financial Services
- Wealth Management & Financial Advisory
- Insurance & InsurTech
- Payments & FinTech Infrastructure
- Risk & Compliance Platforms
7. Energy, Utilities & Environmental
- Renewable Energy Development & Grid Solutions
- Oil, Gas & Power Generation
- Environmental Remediation & Waste Services
8. Manufacturing & Industrial Products
- Packaging & Material Solutions
- Automotive & Equipment Components
- Aerospace & Electronics Manufacturing
9. Education & Training
- EdTech Platforms & Digital Learning
- Professional Certification & Workforce Training
10. Media, Marketing & Communications
- Digital Marketing & Advertising Tech
- Events, Entertainment & Media Agencies
