Last updated: March 19, 2026, 5:30 PM ET
Dealmaking & Exits Accelerate Across Europe and US
Activity in the European mid-market is showing notable exits and continuation fund activity, as CVC and Nordic Capital explore exit options for Cary Group, potentially valuing the business at over €3 billion. Simultaneously, in the secondaries space, Ares leads on two European mid-market CVs, including a £400 million-plus vehicle for nursery operator Kids Planet and a €300 million fund for a frozen baked goods asset managed by MCH, which also closed a separate single-asset continuation vehicle for Europastry JC Flowers’ Small-Cap Deal. In the US, Blackstone-backed Chartis scooped up health tech firm Leap AI as strategic M&A continues in the healthcare advisory sector, while Sterling snapped up managed IT services firm Cyber Advisors in a new platform deal.
Secondaries Market Shifts Focus Amid Tech Volatility
The secondaries market is experiencing a subtle sector rotation, with investment bank Houlihan Lokey observing that technology moves down the list of favored CV sectors due to market disruption, prompting LPs to seek deployment elsewhere. Despite this shift, disciplined sellers are emerging, with a notable number of LPs bringing structured sales to market over the last 15 months, distinguishing themselves through methodical divestment strategies. Furthermore, secondaries interest is growing in GP-led transactions, exemplified by High Vista Strategies appointing a new managing director to launch its dedicated GP-led secondaries strategy focused specifically on the lower middle market private equity space.
Continuation Funds and GP-Led Transactions
Large continuation funds continue to anchor major transactions, evidenced by QHP Capital completing an $1.1 billion continuation fund for Azurity Pharmaceuticals, which was led by Harbour Vest Partners with participation from Pantheon Ventures. In a distinct but related transaction, Bindley Capital-backed Guardian priced a ‘synthetic secondary’ offering for its long-term care pharmacy services company based in Atlanta. Meanwhile, despite high-profile shifts away from direct investment mandates by some LPs, the willingness of limited partners to engage in co-investing remains strong, suggesting that the current environment is less a retreat than a "Trafalgar moment" for direct allocations versus co-investment structures.
Sector-Specific Investments in Infrastructure, Life Sciences, and Climate
Deal flow remains active across specialized sectors, with large infrastructure plays underway as LS Power moves to acquire PJM gas assets from Constellation Energy for $5 billion, securing approximately 4.4 gigawatts of generation capacity across Pennsylvania and Delaware. In healthcare, B-Flexion Life Sciences successfully merged two portfolio companies, Paratek and Radius Health, following a $1.3 billion financing round advised by Mintz. On the climate front, BNP Paribas Asset Management Alts backed FarmCarbon to help scale methane reduction initiatives within agriculture, signaling growing institutional capital allocation toward climate-focused vehicles.
Exits, Portfolio Management, and Firm Strategy
Firms are actively managing existing holdings, as seen by Permira planning to exit its stake in AltamarCAM to Mercer, allowing the global private markets investment firm to change ownership hands. In portfolio management, ICG is backing Italian railway maintenance provider Comcreta to facilitate its next phase of expansion, capitalizing on accelerating infrastructure investment across Italy. Furthermore, asset monetization extended to the entertainment sector where Pophouse became the majority owner alongside BMG in the music interests of Tina Turner, following reports that the firm was seeking exits for several assets, including the catalog Pophouse snagged.
Startup Funding and Regulatory/Geographic Shifts
Venture capital remains concentrated in AI and workflow automation, with two Palantir veterans raising $30 million and receiving a stamp of approval from Sequoia for their new knowledge base startup, Edra. In Europe, early-stage funding continues, with Index backing YC alum Parallel in a $20 million Series A to deploy AI agents specifically within hospital systems. In the UK, however, there are signs of talent migration, as a recent survey indicates that one in five UK founders plans to leave the country within the next year, even as local ecosystems celebrate growth stories like those achieving "Revenuemaxxing" in the UK and Ireland. For specialized funds, the EBRD committed $40 million to the Templeton Türkiye private equity fund targeting an overall close of $300 million.
Internal Firm Governance and Tax Planning
Beyond transactions, focus remains on internal firm structure and legacy planning. CPAs are advising General Partners on utilizing estate planning tools, suggesting that gifting a portion of carried interest earlier can effectively accrue future appreciation outside the GP’s taxable estate for substantial tax savings. Meanwhile, major firms continue internal reviews; for instance, Van Lanschot Kempen is exploring strategic options for its $11.5 billion liquid funds unit. Separately, social media platform Bluesky secured $100 million in Series B funding following a CEO transition, earmarked for scaling its team and advancing its ATProto infrastructure.