Private Equity 24 Hours

Last updated: August 14, 2026, 11:40 PM ET

AI Hype and Investment Discipline

Joshua Kushner, co-founder of Thrive Capital, has cautioned venture capital firms against succumbing to AI euphoria, urging them to maintain investment discipline. In his inaugural investment letter, Kushner acknowledged the significant opportunities within artificial intelligence but stressed that "excitement should not weaken our investment discipline." This sentiment comes as the AI sector continues to attract substantial funding, though some investors are urging a more measured approach amidst the prevailing enthusiasm.

Major Funding Rounds and Sector Trends

Databricks has once again entered the fundraising arena, seeking an additional $5 billion, just eight months after raising a similar amount. This substantial round highlights the ongoing demand for data and AI infrastructure. Other significant funding rounds this past week included those for an AI neolab, companies focused on data center and electricity storage, and the defense sector. The Crunchbase News report indicates that 40 companies joined the Unicorn Board in July, the highest count in four years, with financial services, robotics, AI orchestration, multimodal AI, energy, and semiconductors leading the charge. Notably, the U.S. accounted for nearly half of these new unicorns.

Private Equity Deal Activity

In the manufacturing sector, Shurco, a company backed by Behrman, has acquired Heavy Motions Inc., expanding its capabilities in cargo covering and control systems. Meanwhile, Battery Ventures has invested in Vetspire, an AI operating system designed for veterinary practices. The funds will be utilized to enhance product innovation and AI development, further supporting veterinary teams. In the realm of interior surfaces, Wolf-Gordon, with support from Charger, has acquired two providers: Andor Willow and Walls & Interiors.

The nutraceuticals market is also seeing significant interest, with Butterfly Equity, Graham Partners, and Wise Equity reportedly transacting with assets in this space. Demand for antimicrobial testing is driving deal momentum in the engineering sector, as exemplified by Astorg's $1 billion carve-out of Thermo Fisher's microbiology business.

Infrastructure and Data Centers Attract Investment

CVC DIF, the infrastructure arm of private markets group CVC, has agreed to acquire a majority stake in firstcolo, a Frankfurt-based colocation data center operator, from Cube Infrastructure. This deal underscores the growing importance of data center infrastructure in the investment landscape. Additionally, ASML, Amadeus, and other enterprises are committed to backing Mistral's data center buildout, signaling strong corporate support for the expansion of AI-related infrastructure.

Software Buyouts and Valuations

Silver Lake is reportedly in discussions to take Workday private, a transaction that would rank among the largest software buyouts in history. This potential deal signals a trend towards significant consolidation and private ownership in the software sector. In a contrasting development for public markets, La Caisse's private equity portfolio experienced a 4.3% decline in the first half of 2026, significantly underperforming a benchmark that gained 8.0%. This divergence suggests that while public markets, buoyed by AI rallies, have seen gains, private equity valuations have faced headwinds.

Geographic Expansion and Strategic Shifts

UK spinout investor Northern Gritstone is expanding its global reach by opening an office in San Francisco. This move indicates a growing appetite for international collaboration and investment in innovation hubs. Saudi Arabia's Public Investment Fund (PIF) is pivoting its strategy towards value realization, aiming to attract private capital for its next phase of development. The PIF's 2026-2030 strategy emphasizes active ownership and a greater role for private investors, shifting from rapid capital deployment to a more focused approach.

Distressed Debt and Co-Investment Opportunities

Private credit heavyweights, including Pimco and Pollen Street, are reportedly circling a €1.2 billion ($1.4 billion) package of non-performing loans being divested by Italy's BFF Bank. This indicates a market for distressed debt and opportunities in the private credit space. On the public pension fund front, the Weymouth Retirement Board has issued a request for proposals (RFP) for private equity co-investment managers, signaling a continued interest in diversifying its portfolio through private markets.

Emerging Technologies and Sector Focus

VCs are closely watching 10 drone startups in 2026, highlighting the growing potential of unmanned aerial vehicle technology. The European fintech sector, however, is facing challenges related to its culture, suggesting that operational and organizational issues may be hindering growth despite technological advancements. EQT’s €5bn Scaleup Europe Fund has debuted with a €450 million investment in ICEYE, a satellite operator valued at €10 billion, demonstrating significant backing for space-based data solutions.