Private Equity 3d Briefing
×Last updated: March 13, 2026, 2:31 AM ET
European Secondaries Surge
The European secondaries market sifted.eu has become a frenzy of activity, with Sifted reporting that "who isn’t selling?" has become the prevailing question among limited partners and general partners alike. This surge is being driven by a massive increase in GP-led continuation vehicles secondariesinvestor.com, which hit an all-time high in volume last year, according to Secondaries Investor. To manage this flow, firms like W Capital Partners secondariesinvestor.com are promoting structured solutions that allow GPs to retain assets within flagship funds, a strategy aimed at navigating what David Wachter predicts will become a more pronounced "K-curve market." The trend extends beyond Europe, with General Atlantic secondariesinvestor.com entering the secondaries space via a partnership with Clipway to target $1 billion for a growth equity-focused fund. Meanwhile, major LPs are active sellers; CPP Investments secondariesinvestor.com has launched a multi-billion-dollar portfolio sale, Project Ember, including equal strips of buyout funds. The market's evolution is also reshaping dealmaking, with Edmond de Rothschild Corporate Finance secondariesinvestor.com and Jasmin Capital forming a partnership to handle co-control deals where GPs sell part of a stake via M&A while moving the remainder into a continuation vehicle. The pressure to execute is high, as LPs express growing frustration privateequityinternational.com with process pain points despite record deal volume.
Fundraising Momentum & Strategic Shifts
Despite a broader fundraising slowdown in private equity, several firms are securing major commitments by targeting specific niches. I Squared Capital pe-insights.com is nearing a $10 billion close for its next flagship infrastructure fund, capitalizing on the sector's boom. In private credit, Deutsche Bank pe-insights.com disclosed a €26 billion ($30 exposure as it plans expansion, even as industry leaders warn of rising default risks. BNP Paribas Asset Management pe-insights.com has gathered €540 million for its first GP stakes strategy, targeting private capital managers directly. The Asia-Pacific market remains a bright spot, with Bain Capital pe-insights.com securing $12.5 billion across its latest Asia and Japan buyout vehicles. On the venture side, VC mega-funds are making a comeback techcrunch.com, with General Catalyst rumored to be raising $10 billion and Spark Capital $3 billion, following a wave of large fundraises. This follows UVC Partners sifted.eu raising €77 million for its first close of a new growth fund, marking a "move into multi-stage investing." The influx of private wealth capital is expanding capacity, though Ardian’s Ava Mallin secondariesinvestor.com cautions that the secondaries market remains "undercapitalised" for larger deals.
AI and Tech Deal Flow Reshapes Portfolios
Artificial intelligence continues to dominate venture capital and influence private equity portfolio strategies. Humanoid robotics maker Sunday techcrunch.com reached a $1.15 billion valuation to build household robots, emerging from stealth with 1,000 employees. In enterprise AI, Gumloop techcrunch.com landed $50 million from Benchmark to empower employees as AI agent builders, reflecting a shift from flashy demos to measurable outcomes. The unicorn minting pace techcrunch.com remains intense, with nearly 40 new unicorns this year, including six robotics and four semiconductor startups in February alone. Legora news.crunchbase.com, a Swedish legal AI platform, raised $550 million at a $5.55 billion valuation, while Breakout Ventures techcrunch.com closed a $114 million fund for AI science startups. The focus is sharpening: VCs are recalibrating news.crunchbase.com to prioritize startups with real production usage and revenue, not just hype. This extends to infrastructure, with Nscale sifted.eu aiming to deliver $14 billion of compute capacity and Copenhagen Infrastructure Partners pe-insights.com securing €1.3 billion for a green credit fund. Even traditional sectors are being disrupted; Rebar news.crunchbase.com raised $14 million to use AI for faster HVAC quotes, and Owkin spinout Waiv sifted.eu secured $33 million to scale AI-powered medical testing.
Credit Market Concerns and AI Joint Ventures
Private credit is facing heightened scrutiny as exposure grows and AI reshapes the economic landscape. Deutsche Bank’s $30 billion disclosure pe-insights.com underscores the sector's scale within major banks. Partners Group Chair Steffen Meister pe-insights.com warned that private credit default rates could rise as AI transforms markets, though CEO David Layton privateequityinternational.com later countered that fears are "wildly overdone," noting the firm hasn't levered its evergreen funds like peers. The AI theme is also driving collaboration: Blackstone and Hellman & Friedman pe-insights.com are exploring a joint venture with Anthropic, seeking to deploy capital into foundation AI models. Meanwhile, Cliffwater’s investment chief secondariesinvestor.com is questioning the practice of "squeezing" net asset values in secondaries, calling it a "weird time arbitrage" that disadvantages evergreen investors. The debate highlights tensions as traditional private equity firms push back against AI fears pehub.com while navigating valuation mismatches in their own portfolios.