Executive summary
Ireland entered 2026 in the same global environment as its peers: unsettled geopolitics and uneven capital markets. Yet, the latest Grant Thornton Private Equity Pulse 2026 suggests that Ireland remains an attractive home for private capital.
In a global market characterised by longer holding periods, constrained liquidity and pressure on returns, Ireland punches above its weight, with strong fundamentals underpinning resilience. Irish private equity firms remain very active, taking opportunities for divestment where sectoral tailwinds are right, but appear less reliant on pure market timing and more focused on growing value within their portfolio companies through operational improvements, talent development, technology adoption and strategic expansion.
This is reflected in PitchBook’s 2025 data, which shows 137 deals completed, 34 exits and €1.8 billion of capital invested, supported by 160 investors. It is not a boom market, but it is an active, healthy one. Sustaining it will depend on how effectively firms manage exits, identify value within favoured sectors and differentiate in a more selective capital environment.
Resilience and disciplined execution
The Pulse shows Irish firms placing greater emphasis than international peers on deal sourcing (43%), portfolio value creation (39%), and talent sourcing and retention (35%). UK respondents, by comparison, show higher sensitivity to valuation levels (42%) and availability of finance (40%).
Market uncertainty has made 82% of UK and 60% of global PE players pause or delay investments in the last 12 months, compared to only 51% in Ireland. That difference suggests a more resilient economic backdrop, where Irish managers have remained more willing to transact despite uncertainty, while maintaining discipline on execution.
Irish private equity firms are backing operational transformation and cost optimisation to drive revenue growth and margin resilience, with 55% identifying it as a key value creation lever, followed by tech transformation.
Potential for digital and AI upside is increasingly a due diligence focus, with industries such as business support services and professional services clear targets for tech-enablement. Only 49% of Irish PE believe that AI adoption entails more hype than impact, suggesting a broad acceptance of its importance and strategic implementation when compared to the UK (72%) and global (61%) respondents.
Inorganic growth and platform expansion through bolt-on acquisitions remains a key strategy. But performance of the underlying investment and the ability to extract organic value are seen as equally important.
Capital keeps flowing, but with conditions
Fundraising conditions for Irish private equity remains relatively consistent with that of international peers. Re-commitment rates are stable at around 55%, indicating that Limited Partner (LP) appetite for the asset class remains intact.
However, LP behaviour is evolving. The Pulse indicates a preference for fewer General Partner (GP) relationships and higher levels of transparency and reporting. Capital is increasingly concentrated with managers perceived as having clear conviction and a credible value creation track record.
In many cases, Irish private equity firms are still actively raising funds at larger sizes than previous vintages. That reflects confidence in the domestic opportunity. It also reflects the maturation of the Irish ecosystem, with greater sophistication across both LPs and GPs.
Stability may be supporting capital inflows, but it is not lowering expectations. Access to funding increasingly depends on differentiation, sector focus and demonstrable operational capability rather than geography alone.
Deals on the rise, but exits remain tricky
Unsurprisingly, more assets coming to market is cited as the strongest catalyst for Irish deal activity, with 45% of respondents identifying it as key, compared with 34% globally. A narrowing valuation gap (37%) is also helping buyers and sellers transact.
That momentum has continued into early 2026, with an increase in deal announcements in the Irish market.
However, exit and liquidity conditions remain principal constraints on growth across all regions. In Ireland, limited liquidity for ageing assets ranks particularly highly. The IPO market is also still static, with no new domestic IPOs since 2023 and a shrinking listed base on Euronext Dublin.
Thus, firms are implicitly planning for longer holding periods and a broader range of exit routes, including secondary transactions.
Recent Irish exits, such as MML’s exit from Cruinn Diagnostics and Kyte Powertech, Renatus’ sale of AQF Medical and Erisbeg’s sale of Medray, show how realisations are ongoing, but they require preparation and disciplined value creation.
Tailwinds and predictability
Market tailwinds and predictable returns are driving global activity towards financial services, technology and real estate. These sectors offer recurring revenues, diversified customer bases and scope for operational improvement. Many are relatively asset-light and lend themselves to international expansion.
There is ongoing consolidation in Irish financial services, with domestic private equity increasingly active in this space. In technology, specialised software and cyber assets remain attractive. Sustainability-linked platforms, including solar and retrofitting, are gaining traction.
The Irish market has become more sector-aware rather than narrowly concentrated, with investment theses increasingly informed by industry insight and external advisers.
That mirrors developments seen in more mature markets. The emphasis is less on chasing multiple sectors and more on understanding where operational value can be created in specific niches.
Selective internationalisation as a balancing mechanism
The UK remains the primary external focus for Irish private equity, cited by 61% of respondents. Asia-Pacific ranks second at 43%, ahead of Europe and the US. By contrast, UK firms are more domestically focused, with 68% prioritising in-country investment.
For Ireland, international trade and investment are structural realities. As a relatively small island economy, growth often requires outward expansion. The UK is a natural first step, reflecting long-standing trade relationships and post-Brexit supply chain considerations. Many Irish businesses have strengthened their UK footprint in recent years to secure market access and manage trade barriers.
Interest in Asia-Pacific likely reflects broader macroeconomic dynamics and supply chain considerations, particularly in sectors such as industrials and technology. It is selective rather than expansive.
Internationalisation provides diversification and scale. It also introduces execution risk. The firms that succeed will be those that manage that balance carefully.
Strong fundamentals shine amid global softness
The Private Equity Pulse suggests Ireland has benefited from strong fundamentals at a time when global private equity markets remain under strain.
Ireland’s relative appeal appears to be shaped as much by behaviour as by macro conditions, with firms less reliant on leverage and market timing and more focused on building value within assets and efficient execution.
Exit constraints, capital concentration and competitive pressure are real. Strong fundamentals may not remove those pressures, but they give managers the capacity to address them with discipline.
For founders and management teams, that means greater scrutiny on operational performance and clearer value creation plans from day one. For investors, it reinforces that discipline and execution will matter as much as timing.
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