Private equity firms shift to efficiency and AI as competition intensifies

A Termgrid Private Capital Survey for the second half of 2026 finds private‑equity firms are redefining competitive advantage through operational efficiency, specialised expertise and closer client relationships rather than sheer size. Respondents note a cautious market mood, with optimism higher in the EMEA region (45%) than in the Americas (35%). The study predicts continuation vehicles will drive the next wave of liquidity solutions, while 53% expect non‑bank lenders to increase market share in fund financing, especially in Europe.

Automation of workflows is seen as the top operational priority, ahead of artificial‑intelligence (AI) adoption; only 16% of firms have integrated AI into enterprise‑wide knowledge management. “The competition in private‑capital is sharpening, and firms that excel in operational excellence, expertise and stronger client ties will stand out,” said Dipish Rai, co‑founder and CEO of Termgrid.

In a related perspective, Paul Weiss’s global M&A leader Krishna Veeraraghavan observes a renewed deal‑making momentum, driven by capital flowing back into public markets and by increasing interest in AI‑enabled assets. He highlights that AI is improving efficiency, accelerating integrations and raising due‑diligence standards, prompting buyers to prioritize firms with mature AI capabilities and robust governance frameworks.