Private Equity 24 Hours

Last updated: August 15, 2026, 5:31 AM ET

Venture Capital and AI Hype

Joshua Kushner, co-founder of Thrive Capital, has cautioned venture capitalists against excessive enthusiasm for artificial intelligence, urging them to maintain investment discipline. In his first investment letter, Kushner acknowledged the significant opportunity in AI but stressed that "it would also be a grave error in our minds to let excitement weaken our investment discipline." This sentiment comes as the AI sector continues to attract substantial capital, with some investors concerned about a potential bubble, as noted by Joshua Kushner.

Major Funding Rounds and Sector Trends

The past week saw significant capital injections into technology companies, with Databricks leading the pack by raising another $5 billion, just eight months after a similar funding round. Other notable funding recipients included an AI neolab, a data center and electricity storage company, and a defense technology firm. In total, 40 companies joined the Unicorn Board in July, the highest number in four years, with financial services, robotics, AI orchestration, multimodal AI, energy, and semiconductors emerging as dominant sectors.

Private Equity Deal Activity

Private equity firms have been active across various sectors. Behrman-backed Shurco has acquired manufacturer Heavy Motions Inc, expanding its capabilities in cargo control systems. In the technology space, Battery Ventures has invested in Vetspire, an AI operating system for veterinary practices, aiming to accelerate product innovation and AI development. Another significant deal saw Providence Equity agree to acquire Hometrack, a firm specializing in property valuation data and analytics.

Infrastructure and Data Center Investments

Infrastructure funds are also making strategic moves. CVC DIF, the infrastructure arm of CVC, has agreed to acquire a majority stake in firstcolo, a German data center operator, from Cube Infrastructure. Meanwhile, ASML, Amadeus, and other corporate backers are committing to supporting Mistral's data center expansion. EQT's €5bn Scaleup Europe Fund has also made a significant investment, backing satellite operator ICEYE with a €450 million check at a €10 billion valuation, as detailed in Fund Friday.

Geographic Expansion and Strategy Shifts

UK-based investor Northern Gritstone is expanding its global reach by opening a San Francisco office, signaling a move to tap into the U.S. market. Separately, Saudi Arabia's Public Investment Fund (PIF) is shifting its strategy towards value realization, aiming to court private capital for its next phase of development. This pivot emphasizes active ownership and a greater role for private investors.

Distressed Debt and Portfolio Performance

In the credit markets, private credit heavyweights including Pimco and Pollen Street are reportedly circling a €1.2 billion ($1.4 billion) non-performing loan package being sold by Italy's BFF Bank. Meanwhile, La Caisse's private equity portfolio experienced a decline, with holdings losing 4.3% in the first half of 2026, significantly underperforming a benchmark that gained 8.0%, as reported by La Caisse. This performance disparity highlights the challenges in private markets compared to the recent rally in public markets, particularly driven by AI-related stocks.

Sector-Specific Acquisitions

Private equity firms are targeting specialized sectors. Butterfly Equity, Graham Partners, and Wise Equity are among the firms actively investing in nutraceuticals assets. In a separate transaction, Astorg is acquiring Thermo Fisher Scientific's microbiology business for $1 billion, driven by demand for antimicrobial testing solutions. Wolf-Gordon, backed by Charger, has acquired two interior surfaces providers, Andor Willow and Walls & Interiors, bolstering its offerings in wallcoverings and high-performance interior finishes, as noted by Wolf-Gordon.

Co-Investment Opportunities and Fintech Culture

The Weymouth Retirement Board has issued a Request for Proposals (RFP) seeking private equity co-investment managers, indicating continued interest from public pension funds in alternative asset classes, according to Weymouth Retirement Board. On a different note, the European fintech sector is reportedly grappling with culture challenges, which could impact its growth and attractiveness to investors.