Private equity fundraising in the U.S. has fallen for the fourth straight year in 2026, with firms raising approximately $222 billion through September 30, according to PitchBook data cited by saastr.com. If the current pace continues, the total for 2026 would reach about $296 billion, down from $330 billion in 2025 and a peak of roughly $405 billion in 2023.
The decline represents a 27% drop from the 2023 peak unless the fourth quarter significantly outperforms expectations. PitchBook’s Q1 2026 data showed private equity trailing 12-month raises at $385 billion, down 29%, marking the steepest drop among major investment categories. In contrast, venture capital fundraising fell by only 3.6% during the same period, raising $189 billion.
This trend impacts B2B company founders who have historically relied on private equity buyouts as a primary exit strategy, often more common than IPOs or strategic sales. With fewer private equity funds available, these exits are becoming more challenging. Meanwhile, venture capital remains robust, particularly driven by AI investments, attracting continued interest from limited partners who invest in both sectors.
Jason Lemkin, founder of SaaStr, highlighted the ongoing difficulty for B2B companies seeking private equity exits in 2026, emphasizing the sustained fundraising decline. The data underscores a shifting funding landscape where venture capital, especially in AI, is outperforming private equity, which faces a prolonged downturn in capital availability.