Samjong KPMG: "Domestic PE Investment Contracts, Global PEs Remain Active"

Release of the “Global PE Investment Trends” Report

While domestic private equity fund (PEF) investment activity in the first half of this year declined, global PEF managers with greater capital strength have been more active investors, according to an analysis.

According to Samjong KPMG's report, "Global PE Investment Trends and Second Half 2026 Outlook," released on August 20, the total size of private equity investments in Korea in the first half of this year was USD 5.6 billion (approximately KRW 7.784 trillion) across 69 deals. The report stated that “domestic PE investment activity contracted due to a combination of factors, including energy risks stemming from disruptions to Middle East Hormuz Strait shipping, rising funding rates, stagnation in the domestic mergers and acquisitions (M&A) market, and the National Pension Service suspending new domestic PE commitments.”

However, “as the strong dollar trend continues, more companies are considering selling off non-core assets, leading to active investment in quality Korean assets—particularly by global PEs with ample capital strength,” the report explained.

Global investment volume reached USD 1 trillion through 9,294 deals. Although the number of deals decreased compared to last year—when there were 21,646 deals representing a total of USD 2.3 trillion—the aggregate investment volume remained resilient. The report attributed this to investors choosing to allocate capital to large-scale deals by selectively targeting high-growth, high-conviction assets such as AI and energy infrastructure, rather than broadly expanding their investments in a highly uncertain market.

By industry, the technology, media, and telecommunications (TMT) sector attracted the most investment at USD 354.7 billion. This was followed by the industrial manufacturing sector at USD 154 billion, and the energy and natural resources sector at USD 149.2 billion. If this trend continues, the energy and natural resources sector is expected to reach an all-time high in investment. This is attributed to efforts to strengthen energy security amid heightened geopolitical risks in traditional energy supply chains, particularly due to instability in the Middle East. In addition, explosive power demand for data centers and AI infrastructure driven by AI adoption has increased the sector’s investment appeal.

While software sector investment has essentially stagnated, capital is shifting toward hardware fields linked to industrial manufacturing, such as sensors, robotics, and semiconductors.

Jinwon Kim, Deputy CEO of Samjong KPMG, stated, “For the second half of this year, the global PE market is expected to maintain relative stability as it focuses more on large-scale deals in core sectors with strong investment conviction, such as energy, AI infrastructure, and industrial manufacturing-based hardware, rather than on aggressive quantitative expansion. While it will be difficult to resolve a large-scale exit of overvalued, unrealized portfolio companies in a short period of time due to ongoing global geopolitical uncertainty, strategic exits—such as dual-track processes—are likely to expand gradually as the US IPO market partially reopens.”

He continued, “In the second half of 2026, as new PE commitments are scheduled from major LPs such as the National Pension Service, pension funds, and mutual aid associations, domestic PE investment activity is also expected to recover gradually. Interest from both domestic and global PEs will continue in highly skilled precision manufacturing—such as semiconductors and auto parts—as well as exporters of K-beauty and K-culture companies. As a result, investment opportunities may expand beyond traditional buyouts to include growth capital and cross-industry convergence.”

This content was produced with the assistance of AI translation services.