SpaceX’s (NASDAQ:SPCX) $250 billion acquisition of xAI made the first half of 2026 look like a banner period for private market exits, but beneath the headline number, private equity firms are facing one of their toughest liquidity environments in years. Global private equity and venture capital exits fell 6% in the first half of 2026, declining to 1,504 transactions from 1,601 during the same period last year, according to S&P Global Market Intelligence. The slowdown accelerated in the second quarter, when exit activity dropped to 688 deals, the lowest quarterly level since the first quarter of 2024. The SpaceX-xAI transaction helped push total exit values higher, but underscored a broader trend: a small group of category-defining companies attracts outsized attention while the rest face a difficult path to liquidity. Limited partners experienced a fourth consecutive year of record-low distributions in 2025, putting pressure on fund managers to return capital. Technology remained the most active sector for exits in the first half of 2026, accounting for 428 transactions, roughly 60% more than industrials, which recorded 266 exits.