JPMorgan’s M&A chief sees softer 2027–but a potential upside surprise in private equity exits
By the second half of 2027, some private equity firms may have to stop waiting for a better time to sell, JPMorgan’s global head of M&A says.
Morgan Chittum reports that JPMorgan’s Chief of M&A sees a softening of the private equity market in 2027, but potential upside surprises through private equity exits. Private equity firms have been delaying liquidity due to aging holdings, refinancing deadlines, and investor demands for returns. With the inventory of unsold investments reaching 33,853 as of Sept.
30, 2026, it would take over eight years to clear this backlog based on current exit rates. The industry's boom-and-bust cycle, post a record-setting 2021 and sharp slowdown due to aggressive interest rate hikes in 2022, is a contributing factor. Longer holding periods and impending refinancing deadlines in 2028 or 2029 will force firms to make decisive decisions on selling or holding.
While dealmaking is expected to remain relatively healthy, the market is projected to skew towards larger deals, particularly in AI-related mergers and acquisitions. Private equity firms are exploring alternative exit formats, such as continuation funds and secondary deals, to return capital to investors.
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