Global deal activity witnessed a year-on-year (YoY) 3% decline during the first quarter (Q1) 2026, as the sluggish M&A and private equity (PE) landscape overshadowed a resilient venture capital (VC) activity. While macro uncertainty pressured overall deal-making activity, VC volume climbed 5%, reveals GlobalData, a leading intelligence and productivity platform.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The modest YoY pullback reflects persistent macro uncertainty and continued selectivity among corporates. Despite the broader easing, pockets of resilience emerged, most notably in VC deals and some regional markets.”
An analysis of GlobalData’s Financial Deals Database reveals that the number of M&A deals announced globally declined by around 7% YoY in Q1 2026, whereas private equity deal volume fell by around 17%.
Bose adds: “This signals that investors are selectively re-engaging with growth opportunities, particularly where business models demonstrate clearer paths to profitability or strong unit economics.”
North America recorded a 4% YoY increase, standing out as the only region to expand deal activity in Q1 2026. The rise suggests comparatively stronger confidence, and sustained activity.
Elsewhere, deal volumes softened. Deal activity in Europe and Asia-Pacific regions declined by 7% and 6% YoY, respectively. Deal volume in the Middle East and Africa, and South and Central America were also down by 7% and 24%.
The top two markets by deal volume, the US and China, posted YoY growth of around 4% and 38%, respectively, during Q1 2026, whereas Japan, Germany, Australia, South Korea, Italy and Brazil saw contraction in their respective deal volumes by 45%, 16%, 18%, 27%, 23% and 45%, respectively. Meanwhile, deal activity in India and Canada was almost flat.
Bose concludes: “In the near-term this selectivity is set to intensify, favoring markets like the US and China, where innovation-led resilience consistently outpaces broader macroeconomic volatility.”
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.
