US growth PE fundraising rebounds to record H1 high
US private equity managers targeting high-growth businesses without seeking control are seeing a sharp revival in fundraising, with growth equity funds attracting a record $33.2bn in the first half of 2026, according to a report by the Financial Times.
The total, compiled by Preqin, was 36% higher than the same period last year and represented the strongest first-half fundraising performance on record for the strategy. Capital raised across other private equity strategies increased by 20% over the same period.
The recovery has occurred despite fewer managers coming to market. Some 87 growth funds raised capital in the first six months of the year, down from 96 in the first half of 2025, highlighting the increasingly selective nature of investor allocations.
Established managers and specialist firms have both benefited from renewed demand, with artificial intelligence and more moderate private company valuations helping to revive institutional interest.
Growth equity fundraising surged during the pandemic-era technology boom, reaching $67bn for the full year in 2021 as exceptionally loose monetary and fiscal policy fuelled investment in fast-growing technology companies.
The subsequent reversal in market conditions exposed concerns around the ability of those businesses to translate rapid revenue expansion into sustainable profits. Fundraising fell to just $29bn in 2023 as investors pulled back from the strategy.
A weak exit environment compounded the problem. Fewer IPOs and M&A transactions meant private market investors received less cash from existing investments, reducing their capacity to commit to new funds.
Growth equity has since staged a recovery. Fundraising increased in both 2024 and 2025 and is now on course for another increase this year.
Private company valuations had fallen materially from their 2021 levels, creating opportunities to invest at more attractive entry multiples. The rapid emergence of major artificial intelligence companies meanwhile, has provided another catalyst for the strategy.
