KPMG: private equity energy investment hits $243.3 billion in 2026

Private equity investment in energy and natural resources reached $243.3 billion by the end of Q3 2026, according to KPMG's Pulse of Private Equity Q3'26, driven by AI power demand and energy security.

Energy investment reaches $243.3 billion as AI data centers need power

KPMG said energy has benefited from the growing focus on AI because of its role in fueling data centers. At $243.3 billion, the sector is within reach of a new record high.

Gavin Geminder, KPMG's global private equity leader, said in the report that "the energy sector is seeing incredible interest from private equity."

He cited rising power consumption, demand from AI infrastructure and energy security, on top of the energy transition and the need to upgrade aging infrastructure.

Four energy deals worth $2.1 billion to $7.7 billion led the quarter

KPMG listed DCC Energy at $7.7 billion, Aypa Power at $7 billion, VTX Energy Partners at $3 billion and Plus ES at $2.1 billion among the sector's large deals.

KKR and Energy Capital Partners agreed to take DCC Energy private for $7.7 billion, a 36% premium to its three-month average price before talks became public, according to Financier Worldwide.

Aypa Power, a US energy storage and renewables company, changed hands in a $7 billion secondary buyout, KPMG said.

DigitalBridge is buying Plus ES, an Australian smart-metering business with 2 million installed digital meters, according to Ausgrid. Ausgrid's announcement gives no price, so the $2.1 billion is KPMG's figure alone.

Industrial manufacturing reaches 75% of its 2021 record on defense demand

Industrial manufacturing attracted $122.6 billion by the end of Q3, according to KPMG, putting the sector on pace to match its 2021 record of $163.3 billion. That is 75% of the record, our calculation.

KPMG tied the strength of industrial manufacturing and automotive to defense becoming a major government priority, particularly in Europe given the conflict in Ukraine and the conflict in the Middle East.

KPMG said sponsors have bought manufacturing assets to repurpose them for defense buyers, and that growing opportunities in physical AI and robotics have likely also drawn investors.

Larger deals lift the global buyout median to $101.7 million

The global median buyout was $101.7 million in 2026 and the average $725.5 million, according to KPMG. Median growth-equity deals were $21.2 million and the average $139.8 million.

The gap between average and median shows that a few large transactions pull the totals. Energy's $243.3 billion is about twice industrial manufacturing's $122.6 billion, our calculation.

Report in numbers

Caption: Private equity investment and deal values in US dollars through Sept. 30, 2026. Source: KPMG, PitchBook data as of Sept. 30, 2026. The 75% share and the two-times comparison are our calculation.

KPMG expects AI infrastructure, energy and industrial manufacturing to stay in focus

KPMG said investment is likely to stay highly selective into Q4 2026 on geopolitical tensions, inflation, rising interest rates and the cost of capital.

The Federal Reserve raised its federal funds target range to 3.75%-4% on Sept. 16, according to the Federal Reserve.

The Bank of Japan lifted its rate to 1.25% on Sept. 18, Al Jazeera reported.

• Q4 2026: KPMG expects AI infrastructure, energy and industrial manufacturing to remain key sectors for investment.
• Q4 2026: KPMG expects take-privates and carve-outs to stay a major focus for private equity investors.

How we reported this: We read KPMG's 94-page Q3'26 report and opened the Financier Worldwide, Ausgrid, Fed and Al Jazeera pages. The 75% and the two-times comparison are our calculation: 122.6 / 163.3 and 243.3 / 122.6.