Q2 2026 Middle-Market Private Equity M&A Report: More Deals, Smaller Checks

Summary: In Q2 2026, middle-market private equity deal volume increased even as aggregate deal value declined, reflecting a shift toward smaller transactions and continued buyer discipline. This report by KSM Corporate Finance examines key market trends and offers insights for business owners, investors and advisors navigating a selective transaction environment.

Middle-market private equity activity picked up during the second quarter of 2026, with deal count increasing 7.6% from Q1 to 766 transactions. At the same time, aggregate deal value declined 12.3% to $75.6 billion, the lowest level of the past eight quarters. Median deal size also declined in the first half of the year as transactions between $25 million and $100 million gained share, pointing to a market where buyers remain active but disciplined on size and price.

The Q2 2026 Middle Market Private Equity M&A Report analyzes deal and exit trends, financing conditions and evolving buyer behavior across the middle market. The report also examines the shift in activity from add-on acquisitions toward growth and expansion investments and highlights the continued preference for businesses with demonstrated cash flow, defensible earnings and identifiable downside protection.

Download the Report