Private Equity 3d Briefing
×Last updated: March 23, 2026, 10:30 PM ET
Fundraising & Secondaries Activity
Private equity fundraising continues to show divergence, with growth equity specialist Lead Edge Capital landing $3.5bn pe-insights.com for its seventh fund focused on software deals, while London-based Air Street Capital closed its $232M Fund III techcrunch.com, marking one of the largest solo GP funds in Europe aimed at early-stage AI ventures across Europe and North America sifted.eu. Conversely, the demand for liquidity in the secondary market is intensifying, exemplified by the University of California system seeking to offload a $3bn LP portfolio secondariesinvestor.com to realize capital. This push for liquidity is mirrored by Mercer’s recent acquisition designed to bolster AltamarCAM’s secondaries capabilities privateequityinternational.com, as institutional investors seek better exit pathways amid broader market overhangs privateequityinternational.com.
Dealmaking & Exits
Activity across deal execution remains brisk, though exit challenges persist, particularly in Asia-Pacific where the number of portfolio companies held over five years jumped 18% in 2025 privateequityinternational.com. In the U.S., Arlington Capital is moving to acquire Eptec Defence pehub.com, a specialist in naval and defense preservation services, signaling continued focus on specialized defense contractors. Elsewhere, Apollo and CVC are jointly acquiring a 37% minority stake in €1.75bn Syntegon pe-insights.com to fuel the packaging firm’s next growth phase, and Olympus Partners is targeting an $1.1b sale of its EyeSouth retina business pehub.com. In the tech sector, Francisco Partners is divesting music publisher Kobalt to Brookfield-backed Primary Wave pehub.com, while Sovereign sold Knovia to Eureka Education pehub.com, noting the latter more than quadrupled its revenue under Sovereign’s tenure pehub.com.
Sector Focus: AI, Defense, and Infrastructure
The intense focus on artificial intelligence is driving significant capital deployment, with OpenAI reportedly offering private equity firms a guaranteed minimum return of 17.5% pe-insights.com to secure backing for its joint venture expansion push. This enthusiasm extends to specialized technology plays, evidenced by Gimlet Labs raising an $80 million Series A techcrunch.com for its AI inference bottleneck technology compatible across multiple chip architectures. In defense, European activity includes French-Italian VC 360 Capital raising €85m for a deeptech fund backed by a defense prime sifted.eu, alongside the reported acquisition of defense preservation provider Eptec Defence by Arlington Capital pehub.com. Infrastructure investment is also active, with PE and infrastructure funds targeting a $7bn Kuwait pipeline deal pe-insights.com as Gulf energy transactions advance.
Strategic Acquisitions and Portfolio Tweaks
Firms are actively expanding portfolio footprints through add-on acquisitions. Gryphon-backed Rootstock acquired ERP software provider Ascent Solutions pehub.com, which builds on the Salesforce platform, while Diversis scooped up fintech firm LTi pehub.com. In Europe, One Equity executed a take-private transaction to buy UK wholesale distributor Kitwave pehub.com. Meanwhile, divestitures highlight strategic trimming: Advent-backed Cobham Ultra agreed to sell its Ultra Cyber division to Airbus Defence and Space pehub.com, and Bridgepoint-backed PEI Group acquired Scientific Infra & Private Assets pehub.com, a benchmark provider for infrastructure and PE markets. In Southeast Asia, Actis completed the acquisition of a 90% stake in Singaporean environmental manager 800 Super pe-insights.com, pushing Actis’s regional deployment to $1.7bn pe-insights.com.
Venture Capital and Emerging Trends
Venture capital dynamics show a sharp deceleration in mega-rounds, causing U.S. startup funding to slow sharply in March news.crunchbase.com, primarily due to fewer massive AI deals closing. Despite this broader slowdown, niche areas are attracting concentrated capital; for example, CEOs from rival prediction market platforms Kalshi and Polymarket are backing a new $35M venture fund, 5(c) Capital techcrunch.com, targeting startups in that burgeoning sector. Further illustrating sector specialization, AEA Elevate invested in tech firm Trinamix pehub.com, which services enterprise and mid-market clients. Additionally, former professional athlete Terrence Murphy launched Synergy Sports Capital pehub.com after a twenty-year gap following his NFL career, unveiling the firm's debut deal this month pehub.com.
Internal Firm Developments & Talent
Key personnel movements signal strategic shifts within established firms. Aware Super appointed Alex Satchcroft to lead its $11bn private equity portfolio pe-insights.com, while ECI welcomed David Danon as a new partner pehub.com, who joins after nearly two decades on Bain Capital’s PE team. Talent acquisition is also evident at GTCR, which tapped Donnie Phillips as managing director and chief administrative officer pehub.com. In deal sourcing, independent sponsors continue to pursue strategies aimed at generating outsized returns; research suggests these sponsors generally seek returns of 3x or more by prioritizing greater deal selectivity privateequityinternational.com. Finally, in a separate corporate development, Danone agreed to acquire celebrity-backed nutrition brand Huel pe-insights.com, strengthening its foothold in the consumer health segment.