Private Equity 24 Hours

Last updated: July 9, 2026, 5:30 AM ET

Buyout Activity Picks Up Amid Market Bifurcation

Private equity firms are observing a narrowing bid-ask spread for quality assets, signaling a potential uptick in deal activity for the latter half of the year, according to James Redmayne of Searchlight Capital. He noted that businesses with defensible fundamentals are attracting considerable buyer interest, while more cyclical or AI-exposed companies are facing challenges. Searchlight sees B2B events and blue-collar services as particularly strong investment areas. In line with this trend, Arrow Global has signed a deal to acquire Fusion Specialty Group, a managing general agent that has written approximately £290 million in gross premiums. Tricor Pacific Capital has acquired Arctec Alloys Limited, intending to merge it with a portfolio company to establish a leading North American maintenance welding platform. Recognizing the growing importance of AI, Paradigm has raised $1.2 billion for its latest fund, which will invest in "technical frontier" startups, including those in robotics and AI, expanding beyond its traditional cryptocurrency focus.

Growth Investments and Sector Focus

PSG Equity has agreed to a majority growth investment in Bright Analytics, a Belgian corporate performance management software provider serving over 1,300 customers across Europe. Meanwhile, Ardian has closed a €1 billion growth investment in HR Path, a specialist in HR consulting and outsourcing. CVC Capital is set to invest in music distributor Distro Kid, with existing investor Insight Partners retaining a significant minority stake. In the healthcare sector, Frazier Healthcare is acquiring health tech firm Matrix Care from seller Resmed. Shore Capital has acquired HR tech firm Thrive Pass, and Recognise is making a majority investment in digital infrastructure services firm Smartlink. Bregal Sagemount has inked an investment in Pandion Optimization Alliance to support its growth, while Sallyport has invested in pipeline erosion remediation firm Submar.

Venture Capital and Startup Funding

Venture capital continues to flow into AI and technology startups. World Fund and IQ Capital are among the backers of a €91 million round for Quantum Diamonds. Nvidia has backed voice AI startup Gradium, bringing its seed round to over $100 million. EdVisorys has secured a $13.3 million Series A funding round to scale its AI-native platform for college transfers. Ashley Smith’s Vermilion Cliffs Ventures announced the close of a $25 million Fund II, targeting startups in AI and security. L1 Impact is targeting $100 million across four funds with a social impact focus, aiming to allocate capital in the Middle East and India. Temasek plans to increase its allocations to AI-focused investments, private credit, and core-plus infrastructure assets by March 2031, noting that EMEA direct investments have lagged other markets.

Market Trends and Investor Activity

Active US investor ranks in the second quarter featured several familiar names, according to Crunchbase News. The secondaries market is seeing increased interest, with Secondaries Investor providing a list of recommended reading and podcasts for buyers. The sports sector remains a focus for private equity, with firms like Apollo, KKR, and Avenue Sports active in soccer deals. Blue Owl is reportedly optimistic about its investment in the Cleveland Cavaliers, and Bruin has secured $530 million for its Full Swing business. River Associates has acquired auto parts provider Horsepower Automotive Group, which designs and distributes performance parts for adventure vehicles. LPs without venture capital allocations may be overexposed to traditional assets, according to LGT, while KKR's Arctos capitalizes on GP illiquidity, and an IPO surge could benefit venture capital exits.