Private Equity 3d Briefing
×Last updated: March 18, 2026, 7:30 AM ET
Dealmaking & Awards: Europe Leads the Pack
European private equity deal activity garnered significant recognition this week, with Oakley Capital winning pehub.com the PE Hub Mid-Cap Europe Deal of the Year for its majority investment in defense technology firm ETNA pehub.com, which is separately reported to be acquiring Brolis Defence Group pehub.com, a manufacturer of electro-optical systems used by NATO forces. In the large-cap category, Accel-KKR secured the top award pehub.com for its exit of customer communications software provider Smart Communications, while JC Flowers took home the small-cap prize pehub.com for selling HR services firm HRK Lunis to Seven2. North American awards were also announced, with Kinderhook Industries claiming the mid-cap title pehub.com for the sale of VAI to Real Truck, and HIG Capital earning the small-cap win pehub.com for its disposal of Koozie Group.
Exit Challenges and Continuation Funds
The persistent difficulty in clearing the private equity exit pipeline continues to plague asset sales secondariesinvestor.com, with even older vintage assets proving challenging to divest in the current environment. Amid these exit hurdles, alternative liquidity solutions are gaining traction, as evidenced by Ares Management leading a €300 million continuation fund pe-insights.com for Europastry after the portfolio company’s initial public offering plans were halted. This structure allows existing owners, such as MCH Private Equity, to retain control while providing liquidity to some investors, reflecting a broader trend where GPs are launching continuation fund strategies privateequityinternational.com to manage difficult divestitures.
Sector Focus: Defense, Infrastructure, and Healthcare
Geopolitical tensions are placing European defense technology under intense scrutiny, with industry insiders noting that the defense capability gap is impossible to ignore sifted.eu, bolstering the prospects for sector specialists like ETNA. Elsewhere in specialized investment, TPG launched One Aged Care pe-insights.com to capitalize on escalating demand for elderly healthcare services across Singapore and Malaysia, while EIG-backed Mid Ocean Energy secured a substantial $500 million commitment from Japan’s Idemitsu Kosan to aggressively expand its LNG platform pe-insights.com. In the U.S., Oaktree-backed Aecon Utilities completed a $60 million purchase of Duna Services and a stake in KNX Utility Services, bolstering its utility infrastructure footprint pehub.com.
Fundraising Activity and Strategic Hires
Investor appetite remains strong for specific asset classes, with I Squared Capital reportedly nearing $10 billion in commitments pe-insights.com for its newest infrastructure fund—a testament to sustained LP interest in real assets. In private credit, Apollo Global Management hired a key executive from Warburg Pincus pe-insights.com to spearhead its new $1 billion private credit fund targeting the Singapore market, signaling an expansion of credit operations in Asia. Meanwhile, Australia’s sovereign wealth fund, the Future Fund, saw senior private markets leaders depart privateequityinternational.com, with joint managing directors for private equity and real assets resigning amid other leadership changes.
LP Scrutiny and Governance Concerns
Limited Partner oversight is intensifying regarding potential conflicts of interest, as demonstrated by the Nevada Public Employees' Retirement System planning to exit its Clearlake exposure privateequityinternational.com due to governance concerns arising from Clearlake’s planned acquisition of Pathway Capital Management. In a separate move illustrating LP adjustments, the Maine state pension fund outlined plans to cut its private equity target secondariesinvestor.com for the second time in four years and may utilize secondaries sales to achieve this reduction. Furthermore, the concentration of wealth is prompting some billionaires to back away from the Giving Pledge techcrunch.com, as a growing number of ultra-high-net-worth individuals rethink prior commitments amid rising global economic disparities.
AI Investment and Startup Ecosystems
Discussions surrounding artificial intelligence investment reveal a competitive landscape where major private equity firms are vying for access to leading technology, with TPG, Bain, Brookfield, and Advent in talks with OpenAI pe-insights.com regarding a potential $10 billion enterprise AI venture. However, the early-stage ecosystem shows caution regarding derivative products; for instance, the Google & Accel India accelerator reviewed over 4,000 applications techcrunch.com but selected only five startups, noting that approximately 70% of pitches were deemed mere "AI wrappers." Separately, there are concerns that the AI sector's "boys' club" mentality could exacerbate existing wealth gaps for women techcrunch.com if funding and leadership roles remain concentrated.
Expansion and Platform Building Across Geographies
Firms are actively building out platforms both organically and through acquisition. The launch of TPG-backed industrial software firm Velotic pehub.com, appointing former PTC CEO James Heppelmann as executive chairman, demonstrates a commitment to scaling vertical software solutions. In Europe, Main Capital merged Cisbox and Millum pehub.com to create an expanded source-to-pay software provider spanning the DACH and Nordic regions, while Nordic Capital moved to acquire a majority stake in trade surveillance business Trading Hub, with Summit Partners retaining a minority stake following the transaction pehub.com. Asia-focused growth is also evident, with LVMH-backed L Catterton planning a significant $313 million investment push across five Japanese consumer businesses as it ramps up its Japan strategy pe-insights.com.
Operational Moves and Talent Acquisition
In personnel movements, Fortress hired Elizabeth Burton as chief strategist pehub.com to be based in New York and report directly to the co-CEOs, while Apollo secured a high-profile executive from Warburg Pincus pe-insights.com for its new credit fund. Meanwhile, the need for specialized expertise is driving consolidation in service sectors; Audax snapped up property management firm Akam from Nautic Partners in a recent transaction pehub.com, and Knox Lane-backed Ruppert Landscape acquired competitor Landscapes Unlimited to broaden commercial landscaping services pehub.com. The market for mid-sized deals, though below 2021 peaks, remains active, with small and mid-sized purchases collectively accumulating a tidy sum news.crunchbase.com, such as New Mile and Haywood Lane backing Wilkerson Crane Rental for fleet expansion.