Private Equity 3 Days

Last updated: March 26, 2026, 11:30 AM ET

Dealmaking Activity Across Sectors

Private equity deal flow demonstrated breadth across infrastructure, defense, and software, with Clearlake Capital acquiring Qualus from New Mountain Capital amidst surging power demand, providing a substantial payout for KKR's CoolIT employees. In defense technology, Advent committed up to $1 billion for deployment into the sector, including funding a planned acquisition by portfolio company Shield AI of Aechelon Technology Inc. Further firm deployment saw Blackstone earmarking $250 million into a UAE payments platform as part of a larger $1 billion regional bet, while Alterra backed General Atlantic on its investment in IoT firm Wireless Logic, signaling continued Middle Eastern interest. Elsewhere, Audax and Greenbriar divested airport services firm AGI to Lone Star after a co-investment period beginning in June 2021, and TowerBrook completed a continuation fund for consulting firm Eisner Amper, a transaction led by Carlyle AlpInvest.

Sector-Specific Acquisitions and Exits

Activity in the consumer and services sectors saw several strategic moves, including Advent exiting its stake in premium beauty brand OLAPLEX for $1.4 billion via a sale to Henkel, even as other beauty dealmaking faces pressure from Middle East conflict. In logistics, Sun European invested in B&H Worldwide, an aerospace component management firm based at Heathrow, while FPE-backed Point74 acquired compliance platform Quor to consolidate the UK's food software market. In workforce solutions, Trinity Hunt-backed Allvia acquired HR Pals, and Sovereign-backed Affinia made an add-on following its initial investment in LB Group in May 2023. TowerBrook also expanded into sports apparel personalization by acquiring ID Unlimited, while Main Post invested in pretzel brand Stellar Snacks, which boasts distribution across major national retailers like Costco and Target.

Infrastructure and Energy Transactions

Large-scale infrastructure investments continued as Brookfield and La Caisse agreed to acquire Boralex in a $9.7 billion take-private transaction aimed at scaling renewables growth. In energy markets, Hull Street is purchasing two power plants from Rockland: the Lee County Generating Station in Illinois and the Tait Electric Generating Station in Ohio. Meanwhile, Generate Capital sold greenhouse operator Equinox Growers to Taylor Farms, supporting regional food supply chains. On the advisory front, Bank of America launched a dedicated Private Capital M&A unit specifically to unlock private equity exits in the current environment.

Fundraising, Secondaries, and LP Dynamics

The fundraising environment showed increasing specialization, with Pictet closing its first direct PE fund targeting founder-led businesses at €403 million, or $440 million. In Europe, the EIF launched a €15 billion fund of funds intended to back 100 growth-stage venture capital firms. Liquidity demands remain high, evidenced by the University of California shopping a $3 billion LP portfolio in the secondaries market. Furthermore, Alterra backed General Atlantic in the Wireless Logic deal, as Middle Eastern capital continues to flow into global assets. Conversely, reports suggest that LPs are slashing budgets allocated to Africa due to waning risk appetites, even as the region's $5.4 trillion in sovereign wealth capital has recently trended inward.

Technology and AI Investment Trends

Venture and growth equity investments continued to favor AI-adjacent technologies, with Kleiner Perkins closing its latest funds totaling $3.5 billion, split between $1 billion for early-stage KP22 and $2.5 billion for growth-stage deployment. In AI infrastructure, Gimlet Labs secured an $80 million Series A for technology enabling simultaneous AI inference across NVIDIA, AMD, Intel, and other chips, while AI notetaking startup Granola achieved unicorn status with a $125 million Series C round. Seed funding, while slowing overall due to fewer massive AI rounds, is skewing toward larger deals; specifically, only rounds of $10 million and above grew in the U.S. market in 2025. In the insurtech space, Terminus Capital invested in Andesa to enhance its administrative tools, and GPI-backed Hopper OS acquired healthcare data firm Efferent.

Defense, Space, and Specialized Tech

The defense and space sectors attracted focused capital, with Chimney Rock Equity acquiring United Electronics Company (UEC), driven by demand for services supporting aircraft and ground vehicles. This aligns with broader PE interest in defense, as Advent prepares to deploy $1 billion into the sector. In spacetech, Arinna raised a $4 million seed round for ultra-thin, efficient solar cells designed for spacecraft, addressing the space power challenge, and Swiss firm Pave Space raised $40 million amid escalating concerns over space sovereignty. Furthermore, TSCP invested in govtech firm Karpel, which services prosecutor and public defender offices nationwide.

Exit Environment and Operational Shifts

Exit activity in Asia-Pacific remains sluggish, with Bain & Co reporting that the number of APAC portfolio companies held for over five years increased by 18% in 2025, indicating an overhang that needs clearing. In Europe, Advent partially exited its position in Trustpilot via a discounted sale of its £46 million stake as shares subsequently fell. On the operational side, internal friction appears in investor relations, as anecdotes suggest AI is already impacting IR functions, and GPs are facing friction in the fund finance process. Additionally, market participants are grappling with the implications of technology; for instance, CVC and Silver Lake are testing a potential $6.7 billion IPO for RAC, while Alterra is backing General Atlantic in the IoT space.

Financial Services and Wealth Management

The financial services sector saw targeted growth investments, including WPCG and HGGC investing in RIA Verdence through the sale of Emigrant Partners’ stake. Meanwhile, Bain Capital secured a A$430 million loan, equivalent to $300 million, to finance its acquisition in the Australian wealth management sector. In firm structuring, advisory groups are expanding capabilities; Jefferies onboarded senior talent from Lazard to bolster its secondaries advisory team amid jockeying for competitive position, and AltamarCAM enhanced its secondaries capabilities following an acquisition, addressing heightened interest in market liquidity.