Private Equity 3d Briefing
×Last updated: March 23, 2026, 7:30 PM ET
Fundraising & Capital Deployment
The private equity fundraising environment shows pockets of strength, even as broader startup funding slows sharply in March news.crunchbase.com, largely due to fewer mega-rounds closing in the artificial intelligence sector. Dedicated growth equity firm Lead Edge Capital landed $3.5bn pe-insights.com for its seventh fund, signaling continued confidence in software deals despite market volatility. Concurrently, London-based Air Street Capital closed a $232M solo GP fund sifted.eu, marking it as one of the largest of its kind in Europe, with a tight focus on early-stage AI companies across Europe and North America techcrunch.com. In related activity, a new firm named 5(c) Capital secured $35M techcrunch.com to back startups focused on prediction markets, receiving backing from rival CEOs in that burgeoning sector, illustrating where niche VC capital is flowing.
Secondaries Market & LP Liquidity
Investor appetite for liquidity remains strong, exemplified by the University of California system shopping a $3bn LP portfolio secondariesinvestor.com in the secondaries market for the latest move seeking to unlock capital. This interest in secondary transactions is being addressed by managers like Mercer, which recently acquired AltamarCAM privateequityinternational.com, specifically to bolster its secondaries capabilities amid heightened demand for exit optionality. Further evidence of this trend comes from Japan, where a local secondaries shop is nearing the hard-cap closing of its debut fund secondariesinvestor.com, RGCM Fund I, which will maintain flexibility to invest in both direct secondaries and primary funding rounds. Separately, Australian LPs are also managing internal dynamics, as one of the continent’s largest LPs addresses potential evergreen drama privateequityinternational.com amid calls for greater transparency.
Sector-Specific Deals: Defense & Industrials
Dealmaking in the defense and industrial technology space saw several key transactions this period. Arlington Capital moved to acquire Eptec Defence pehub.com, a specialist provider of naval and defense preservation services, indicating continued PE interest in government contracting niches. In a related defense divestiture, Advent-backed Cobham Ultra agreed to sell Ultra Cyber to Airbus Defence and Space pehub.com, a transaction that follows similar themes of strategic sales amid exit uncertainties, as West Monroe notes that exit difficulties are leading to longer sellside preparations pehub.com. Furthermore, in the packaging sector, One Equity acquired UK wholesale distributor Kitwave pehub.com via a take-private transaction, consolidating its position in European consumables distribution.
Healthcare & Life Sciences Transactions
The healthcare services sector saw significant portfolio activity, particularly in specialized medical groups. Olympus Partners initiated the sale of EyeSouth’s retina business pehub.com for a reported $1.1 billion, signaling high valuations for focused ophthalmology platforms. Meanwhile, in the insurance space, Aquiline-backed Relation acquired Chinook Insurance Group pehub.com, adding to its portfolio of specialty insurance distribution. Sovereign executed a successful exit, selling Knovia to Eureka Education pehub.com, a transaction where Knovia more than quadrupled its revenue under Sovereign’s ownership through both organic growth and acquisitions.
Technology & Software Acquisitions
Firms continued to target software and enterprise technology assets across various investment stages. Francisco Partners is divesting music publisher Kobalt to Brookfield-backed Primary Wave pehub.com, with management teams set to remain in place post-acquisition. In the enterprise resource planning (ERP) segment, Gryphon-backed Rootstock acquired ERP provider Ascent Solutions pehub.com, which delivers cloud ERP applications on the Salesforce platform. Diversis also completed an acquisition, scooping up fintech firm LTi pehub.com, where the founders will retain minority stakes and remain involved. For mid-market technology services, AEA Elevate made an investment into Trinamix pehub.com, a firm servicing enterprise and mid-market organizations.
Energy, Infrastructure, and ESG Investment
Infrastructure and energy assets in the Gulf region remain a magnet for global capital, with private equity and infrastructure funds targeting a potential $7 billion Kuwait pipeline deal pe-insights.com. In Southeast Asia, Actis finalized the acquisition of a 90% stake in 800 Super pe-insights.com, a Singapore-based environmental management company, bringing Actis’s total deployment in the region to $1.7 billion. The energy transition also saw major commitments, as Ares Management committed at least €1 billion pe-insights.com toward Plenitude as part of a larger €1.5 billion capital increase deal valued at €13.1 billion with Eni.
AI Investment & Venture Dynamics
While overall startup funding slowed, capital deployment into deep-tech and AI infrastructure solutions remains aggressive, albeit often through structured deals. OpenAI is reportedly offering private equity firms a guaranteed minimum return of 17.5% pe-insights.com to secure investment into proposed joint ventures, reflecting the high cost of capital for frontier AI development. Startups addressing bottlenecks are attracting large rounds, such as Gimlet Labs, which raised an $80 million Series A techcrunch.com for technology enabling AI inference across a diverse range of chips including NVIDIA, AMD, and Intel. Separately, VC firms like French-Italian 360 Capital raised €85 million for a deeptech fund sifted.eu backed by a European defense prime contractor.
Firm Strategy, Exits, and Personnel Moves
Major portfolio companies are preparing for blockbuster exits, as Advent and Cinven explore a potential €25 billion exit of TK Elevator pe-insights.com, with Kone reportedly entering advanced discussions to acquire the private equity-owned German manufacturer. Meanwhile, PE firms are continuing internal expansion and talent acquisition. GTCR appointed Donnie Phillips as managing director and chief administrative officer pehub.com to its Chicago office, while ECI named David Danon as a new partner pehub.com after nearly two decades at Bain Capital’s private equity team. Aware Super appointed Alex Satchcroft to lead its $11 billion private equity portfolio pe-insights.com, positioning him to oversee substantial institutional assets. On the dealmaker front, former NFL player Terrence Murphy unveiled his new firm, Synergy Sports Capital pehub.com, completing its debut deal shortly after its formation pehub.com.
Mid-Market & Independent Sponsor Activity
The independent sponsor segment continues to demonstrate a strategy focused on achieving higher returns through greater selectivity. Research suggests that independent sponsors generally seek returns exceeding 3x privateequityinternational.com, often achieved by favoring lower valuation multiples compared to traditional fund deals. In the mid-market, Bridgepoint-backed PEI Group acquired Scientific Infra & Private Assets pehub.com, a provider of private infrastructure benchmarks, enhancing its data capabilities, while the firm’s portfolio company, Cobham Ultra, simultaneously executed a partial sale in the defense sector pehub.com. In the consumer space, Danone agreed to acquire nutrition brand Huel pe-insights.com, strengthening its presence in the health and protein market.