Morning all, Craig Mc Glashan here with the Europe Wire from the London newsroom. At last week’s IPEM conference in Paris, GPs were on the whole pretty optimistic about the outlook for dealmaking in the rest of the year, though there is no real sign yet of a break in the valuation mismatch that has slowed the exit environment. Attractive targets are lining up for sale, but service providers say large numbers of private equity firms are circling, so a lot of GPs are likely to be left disappointed.

Against a backdrop of rising debt-market rates, the response was that the impact will likely be less than the spike in interest rates a few years ago: rates are high but more stable now. DC Advisory’s European Debt Market Monitor: Q2 2026 & Outlook said the market “rebounded strongly” in the second quarter, with new loan issuance including re-financings hitting €32.5 billion, up 36 percent quarter-on-quarter. June volume reached €16.9 billion, the busiest month since June 2025.

KPS Capital Partners has agreed to sell Metra to Grupa Kęty for €645 million. Metra, headquartered in Rodengo Saiano, Italy, operates nine manufacturing facilities and employs about 1,400 people. KPS acquired Metra in July 2021 and completed five add-ons.

Ambienta has made its first international add-on for Spaggiari, a developer of software and services products for schools that it acquired in 2023.