New York, 11 October 2025 — Private equity firms have dramatically ramped up their exit activity in the U.S. utilities sector, with 2025 exit value reaching $14.6 billion, according to industry data. This represents a 34-fold increase over 2024’s $430 million and a more than 360% jump from 2023’s $3.16 billion, underscoring a sharp reversal in dealmaking sentiment after two years of caution.
What’s Driving the Surge?
The spike in exits is attributed to several converging factors:
- Policy recalibration following the 2024 presidential election, which has shifted federal emphasis toward conventional energy and grid resilience.
- Investor appetite for dispatchable generation assets, particularly fossil fuel portfolios, amid concerns over grid reliability and rising demand from data centers.
- Improved market conditions, including stabilized interest rates and a more liquid credit environment, enabling buyers to transact at favorable valuations.
According to PwC’s midyear outlook, two landmark deals — a $29 billion acquisition of an independent power producer and a $12.5 billion purchase of a fossil fuel portfolio — helped catalyze broader exit momentum PwC.
Sector Repositioning
Private equity firms are increasingly divesting long-held utility assets to capitalize on high valuations and reallocate capital toward infrastructure, energy transition technologies, and digital grid solutions. Many exits involved secondary sales to strategic buyers and infrastructure funds, reflecting a shift in ownership from financial sponsors to long-term operators.
EY’s PE Pulse report notes that aging portfolios — with over a third of U.S. PE-held assets exceeding six years — are prompting sponsors to accept modest valuation concessions to expedite exits EY.
Outlook
Despite geopolitical uncertainties and tariff pressures, the utilities sector remains a strategic priority for PE firms, particularly as electrification and data center demand reshape energy consumption patterns. Analysts expect continued exit activity through Q4, though the pace may moderate as firms reassess portfolio composition and regulatory risk.
The $14.6 billion figure not only marks a record year for PE exits in U.S. utilities, but also signals a broader thaw in private equity dealmaking across energy and infrastructure verticals.
