Private Equity 3d Briefing
×Last updated: March 20, 2026, 5:30 AM ET
Fund Exits and Continuation Vehicles
Private equity firms are actively pursuing large-scale exits, even as the broader exit pipeline remains constrained, leading to increased use of continuation vehicles (CVs) for assets bought in less frothy periods The clog in PE’s exit pipeline is getting tougher to clear privateequityinternational.com. Notably, CVC Capital Partners and Nordic Capital pe-insights.com are exploring options to divest their holdings in Cary Group, potentially valuing the business at over €3 billion. This trend toward structured liquidity solutions is evident elsewhere, with MCH Private Equity pehub.com completing a single-asset CV for premium frozen baked goods producer Europastry, a move that followed an IPO halt and was supported by a €300 million fund led by Ares Management pe-insights.com. In the secondaries space, QHP Capital pehub.com finalized an $1.1 billion continuation fund for Azurity Pharmaceuticals, a transaction seeing participation from major players like Harbour Vest Partners and Pantheon Ventures, while Bindley Capital-backed Guardian Pharmacy Services pehub.com priced a 'synthetic secondary' offering for an Atlanta-based long-term care pharmacy.
Secondaries Market Dynamics and LP Activity
The secondaries market is witnessing a distinct approach from certain limited partners (LPs) who have become methodical sellers over the past 15 months, distinguishing themselves from other LPs through their disciplined selling strategies Secondaries players have brought sales to market secondariesinvestor.com. This activity is occurring alongside some LPs re-evaluating their commitments; for instance, the $74.9 billion Nevada PERS privateequityinternational.com intends to reduce its private equity target and may execute secondaries sales in specific situations, citing perceived conflicts of interest arising from Clearlake’s acquisition of Pathway Capital Management. On the buyer side, HighVista Strategies pehub.com has recruited Raudel Yanez to launch a GP-led secondaries investing strategy focused specifically on the lower middle market, while credit secondaries buyers prioritize acquiring valuable products at a discount to eliminate the J-curve effect Credit secondaries: What’s in it for buyers? secondariesinvestor.com. Furthermore, Permira pehub.com is moving to exit its investment in Altamar CAM, a global private markets investment firm with €20 billion in assets under management, selling its stake to Mercer.
Dealmaking Across Sectors: Healthcare and Industrials Lead
Acquisition activity remained broad-based across healthcare, industrials, and specialized services, with several notable transactions closing. In healthcare services, Blackstone-backed Chartis pehub.com acquired health tech firm Leap AI, while B-Flexion Life Sciences portfolio companies Paratek and Radius Health completed a merger supported by a significant $1.3 billion financing package led by Blackstone Credit & Insurance pe-insights.com. Industrial services saw multiple deals, including Sterling’s acquisition pehub.com of managed IT services provider Cyber Advisors and Fort Point’s recapitalization pehub.com of environmental services firm Boston Green. In specialized distribution, Truelink-backed SouthernCarlson pehub.com expanded by purchasing specialty distributor Greenwald Supply Direct, and LFM pehub.com integrated manufacturer Power Built into its American Automation Group platform. Meanwhile, in the specialized cleaning sector, Stephens Group-backed Astro Pak pehub.com acquired Clean Sciences.
Infrastructure, Energy, and Specialized Platforms
Firms continued to build out specialized platforms, particularly in infrastructure and energy. LS Power pehub.com announced its agreement to acquire approximately 4.4 gigawatts of predominantly natural gas-fired generation capacity from Constellation Energy for $5 billion, focusing on assets in Delaware and Pennsylvania. In the maritime sector, EQT and Bpifrance sifted.eu jointly backed the 'flying ferry' startup Candela, which raised €30 million to fund its global rollout. Building out existing platforms, KKR pe-insights.com committed up to $310 million to form a strategic partnership with Allfleet and PMI Electro to expand the Allfleet platform. Furthermore, TPG pe-insights.com launched One Aged Care, a new elderly healthcare platform designed to capture demand across Singapore and Malaysia, while ICG pehub.com backed railway maintenance provider Comcreta to support its expansion in Italy’s accelerating rail infrastructure market.
European Tech, Defense Focus, and Talent Shifts
European technology investment remains active, though there are concerns regarding talent retention, with one survey suggesting one in five UK founders sifted.eu plan to leave the country in the next year, prompting debate over policy effectiveness Can Rachel Reeves stop the UK’s deeptech startups drifting abroad? sifted.eu. Despite these concerns, sector-specific investment is surging, particularly in defense technology, where geopolitical tensions have placed European air defense startups in the spotlight The gap is impossible to ignore sifted.eu, leading venture capitalists to identify 12 defense startups to watch in 2026 sifted.eu. In specialized tech funding, social platform Bluesky announced a $100 million Series B techcrunch.com following a CEO transition to scale its ATProto infrastructure, while Index Ventures backed YC alum Parallel with a $20 million Series A to deploy AI agents in hospitals Index backs YC alum Parallel sifted.eu. Talent movement within the ecosystem is also notable, with former CVC MD Jonathan Au joining Revelation Partners secondariesinvestor.com in the secondaries space, and HighVista Strategies tapping Raudel Yanez pehub.com to lead its lower middle market GP-led secondaries strategy.
Mid-Market and Small-Cap Activity
Mid-market firms are also seeing strong activity, sometimes involving complex structures like continuation funds. Ares Management secondariesinvestor.com is reportedly leading a vehicle for Fremman to house nursery operator Kids Planet, valued over £400 million, and another €300 million vehicle for MCH to hold a frozen baked goods asset. The awards circuits recognized recent successes, with Oakley Capital pehub.com winning the PE Hub Mid-Cap Europe Deal of the Year, while Kinderhook Industries pehub.com secured the Mid-Cap North America Deal of the Year award. In small-cap transactions, JC Flowers won pehub.com the Small-Cap Europe Deal of the Year award, and HIG Capital pehub.com was recognized for its Koozie exit, winning the Small-Cap North America Deal of the Year. Elsewhere, NewMile and Haywood Lane pehub.com backed Wilkerson Crane Rental to fund fleet and geographic expansion, and Fort Point-backed VisuSewer pehub.com acquired sewer inspection firm United Survey.
Firm Strategy and Internal Developments
Firms are making strategic hires and refining internal estate planning guidance for partners. Apollo Global Management pe-insights.com hired a former Warburg Pincus executive to staff its new $1 billion private credit fund in Singapore, while simultaneously partnering with the NYSE owner Intercontinental Exchange to develop new data infrastructure for the private credit market Apollo partners with NYSE owner Intercontinental Exchange pe-insights.com. Internally, sophisticated tax planning is becoming more prevalent, with experts advising GPs on how gifting carried interest early can allow future appreciation to accrue outside of their estate for tax efficiency An insider’s guide to gifting carried interest and estate planning privateequityinternational.com. Meanwhile, European asset manager Van Lanschot Kempen pe-insights.com has initiated a strategic review for its $11.5 billion liquid funds unit, exploring potential divestiture options. In the U.S., American Pacific pehub.com announced the promotion of Rahul Mohan to managing director, reflecting internal growth and recognition.