Last updated: March 20, 2026, 8:30 AM ET
Private Equity Dealmaking & Sector Focus
Private equity firms continued a targeted acquisition spree across specialized sectors, demonstrating a preference for essential business services and healthcare infrastructure. In the industrial space, Gryphon-backed ACA acquired HVAC systems manufacturer Northern Air, an Oklahoma City-based specialty provider, while Palladium Equity prepared to purchase DME Express, a hospice medical equipment provider from Way Point Capital Partners. The healthcare benefit management vertical saw significant activity, with firms like InTandem, NMS Capital, and West View Capital investing across five separate deals focused on employer and employee benefit services, signaling sustained interest in services adjacent to core insurance provision.
Further consolidation occurred in the IT and infrastructure services, with Sterling acquiring managed IT services firm Cyber Advisors, which serves small, mid, and enterprise clients. Meanwhile, in a major energy transaction, LS Power agreed to buy Constellation Energy's PJM gas assets for $5 billion, securing approximately 4.4 gigawatts of natural gas-fired generation capacity across Delaware and Pennsylvania. This activity suggests PE managers are prioritizing mission-critical assets, balancing defensive plays in healthcare and IT with large-scale infrastructure plays in energy transmission.
European Exits and Fund Formation
Activity in European markets included a successful debut for a portfolio company and strategic moves toward major exits. Shares in German defense technology firm Vincorion jumped following its €980 million Initial Public Offering, delivering strong returns for its backer, Star Capital. On the exit front, CVC Capital Partners and Nordic Capital are exploring options for the divestment of Cary Group, a process that could yield around €3 billion. Separately, IK Partners finalized the acquisition of a majority stake in Domek Group, a firm active in the Netherlands that has recently expanded into Belgium and Germany, while Permira’s AltamarCAM exit was reported to have delivered attractive returns according to sources familiar with the transaction.
Growth strategies across Europe involved both debt financing and geographic expansion. CVC Credit provided senior debt to support Waterland Private Equity’s acquisition of Palletways. In Asia, Partners Group is seeking to raise a minimum of $1 billion for its inaugural India-focused buyout fund as it builds out its regional presence. These capital deployment efforts contrast with potential portfolio company sales; for instance, Audax and Keystone are reportedly seeking exits from their respective HVAC portfolio companies, though current holding periods for portfolio companies appear to be longer than historical averages.
Secondaries and GP Strategy Shifts
The private equity secondaries market showed signs of tactical maneuvering from both buyers and sellers. HighVista Strategies appointed Raudel Yanez to lead its GP-led secondaries investing strategy, focusing specifically on the lower middle market space. In continuation fund activity, QHP Capital closed a $1.1 billion continuation fund for Azurity Pharmaceuticals, with Harbour Vest Partners leading the transaction and Pantheon Ventures participating as a major investor. Furthermore, Bindley Capital-backed Guardian Pharmacy Services, a long-term care pharmacy services company, priced a synthetic secondary offering, illustrating alternative mechanisms for liquidity realization.
Large fund managers are simultaneously re-establishing footprints in key regions. TPG is attempting to rebuild its dedicated private equity presence in Japan through a senior hiring, which is part of a wider, multi-asset expansion that includes adding a secondaries executive to TPG New Quest based in Tokyo. This strategic repositioning comes as some Limited Partners display a methodical approach to selling assets in the secondaries market over the past 15 months. Meanwhile, while some LPs appear to be pulling back on direct investment, co-investing is currently experiencing a period of high visibility, suggesting direct LP participation remains strong despite high-profile pivots away from pure direct deal sourcing.
Technology Acquisitions and Founder Dynamics
While many PE firms focus on traditional sectors, strategic acquisitions continue in the technology sphere, often involving large corporate buyers. Amazon successfully acquired ETH robotics spinout Rivr, indicating Big Tech's ongoing appetite for specialized R&D assets. In the advisory space, Blackstone-backed Chartis scooped up health tech firm Leap AI, based in Chicago, bolstering its healthcare advisory capabilities with technological expertise. Separately, the startup ecosystem continues to see capital flow, as social media platform Bluesky announced a $100 million Series B round following a CEO transition, funds earmarked for scaling its team and developing the underlying ATProto architecture. This contrasts with broader sentiment in the UK, where one in five founders surveyed indicated plans to leave the country within the next year, even as the region sees rapid growth in "revenuemaxxing" startups.