Private Equity 3d Briefing
×Market Outlook
Blackstone secondariesinvestor.com predicts 2026 will be a record year for exits and secondaries volume, with exit volumes moving assets' cashflows forward allowing secondaries buyers to offer higher prices. This outlook comes as LP-GP dynamics "have never been more complicated" according to Mike Lazorik pehub.com of Texas TRS, who noted the industry's recovery appears to be gaining traction. Global buyout deal value surged to $904 billion as "12 is the new 5" reshapes returns, according to Bain analysis.
Large Deals & Exits
KKR pe-insights.com is lining up a $1 billion IPO exit for Global Medical Response, while the firm also outbid rivals to secure a majority stake in $1.3 billion XCL Education. Bain pe-insights.com and Lone Star advanced in a $1.9 billion bid race for Mitsubishi Electric's auto unit. In another major transaction, Citigroup pe-insights.com agreed to sell a 24% stake in its Mexican unit Banamex for $2.5 billion, with General Atlantic and Blackstone among the investors.
Fundraising & Secondaries
The secondaries market saw significant activity with GIC secondariesinvestor.com emerging as the lead buyer on Meridiam's €2 billion+ continuation vehicle, while Rockpoint Gas Storage pehub.com closed a C$459 million secondary offering where Brookfield sold 16.4 million shares. Data shows 85 continuation vehicles closed in 2025, with 40 more launching or being mulled, according to Secondaries Investor secondariesinvestor.com. Meanwhile, 40% of GPs expect to consider continuation vehicles in the next two years, per a Bain study.
Industry Structure
CalPERS pehub.com is pushing its general partners for better transparency on portfolio company data to help the $613.7 billion US pension better manage risk. Josh Harris pehub.com of 26North warned that mixing unaccredited investor capital with wealth capital via vehicles with differing levels of regulation could lead to a backlash against the industry. In a move to democratize access, Ardian pe-insights.com has partnered with Legal & General to provide private equity exposure to 5.6 million UK defined contribution savers.
Sector Investments
Private equity firms have more than tripled their share of London office acquisitions over the past three years with a $1.68 billion retrofit push, while Gencom pe-insights.com is accelerating its New York hotel buying spree with family office backing. Water infrastructure is drawing increased interest from private equity firms keen to tap into a market with several attractive features, as evidenced by Ambienta pehub.com's new add-on. Meanwhile, private equity firms are eyeing a $2 billion Permian Basin asset sale as Conoco Phillips pe-insights.com streamlines its portfolio.
New Investments & Add-ons
Gemspring pehub.com sold Security 101 to Morgan Stanley, having invested in the company in 2021. Kinderhook pehub.com is taking home health and hospice firm Enhabit private for $1.1 billion at $13.80 per share. In add-on deals, EQT-backed Scale Microgrids pehub.com scooped up Reload, while Ambienta portco No Dig Alliance pehub.com acquired Suomen Putkisto Palvelu, a specialist in manhole rehabilitation and underground water pipe services.