PE investment in construction and engineering has gained momentum as the space remains relatively insulated from tariff uncertainty compared to other industrial sectors.
In Q2, the sector saw 339 deals globally, a 21% year-over-year increase. At the same time, deal value rose by 17% to $24.1 billion, according to PitchBook’s latest Construction & Engineering Report. Looking at H1, there were 710 deals with a total deal value of $47.9 billion, representing increases of roughly 28% from H1 2024.
Many large-scale construction projects are underway and already funded, which reduces the sector’s vulnerability to tariff uncertainty. Strong global infrastructure spending and the reshoring and nearshoring of factories and warehouses are also boosting the vertical, together with technological advancement which creates new opportunities as it can be integrated into existing projects to increase efficiency.
Specialty construction was the most active subsector, with 282 deals in H1, according to the report. Facades and exteriors, metal fabrication, roofing, interiors, and electrical are hot spots.
Specialty engineering recorded 148 deals. This includes advisory services and consulting, project management, design software and services, and architectural.
Featured image by Ezra Bailey/Getty Images
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