Private Equity 3 Days

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

Sector Consolidation and Deal Activity

Private equity dealmaking demonstrated sustained activity across varied specialized sectors, with healthcare and defense technology proving particularly active targets. In healthcare, Olympus Partners-backed EyeSouth acquired Aslett-Kurica Eye Center to expand its eye-care management services organization footprint in Atlanta, while Linden mulls a dedicated secondaries strategy as the Chicago-based firm joins peers in that increasingly popular exit avenue. Furthermore, the sector's appeal was underscored by Kearney noting that women’s health remains ripe for investment, referencing the pending $18.3 billion take-private of Hologic by Blackstone and TPG as a major indicator. Concurrently, defense saw significant capital deployment, with Advent committing up to $1 billion in the space, including a portion earmarked to fund Shield AI’s planned purchase of Aechelon Technology.

In infrastructure and industrial services, Clearlake Capital purchased Qualus from New Mountain Capital, a transaction driven by soaring power demand, while Hull Street agreed to buy two power plants from Rockland, specifically the natural gas facility in Illinois and the dual-fuel facility in Ohio. Other industrial plays included Audax and Greenbriar selling airport services firm AGI to Lone Star, following their co-investment in 2021, and Industrial Opportunity Partners divesting Royston for $325 million. Meanwhile, in regulatory and compliance software, FPE-backed Point74 acquired Quor to establish a unified food software platform in the UK, and Main Capital invested in Gingco Systems to bolster its enterprise resource management capabilities.

Exits and Fund Activity

Firms realized substantial exits across consumer and technology verticals, even as valuation pressures persisted in certain areas. Advent agreed to sell beauty brand OLAPLEX to Henkel for $1.4 billion, capitalizing on the acceleration of premium beauty mergers and acquisitions, while the firm also completed a partial exit from Trustpilot, selling a £46 million stake despite subsequent share price weakness. In the clinical trial data space, an investor group led by Astorg, Nordic Capital, Novo Holdings, and Cinven sold Clario to Thermo Fisher for $8.9 billion. On the fund front, TowerBrook completed a continuation fund for EisnerAmper, which was led by Carlyle AlpInvest and saw participation from Hamilton Lane. Separately, Pictet closed its first direct private equity fund at €403 million, targeting founder-led businesses, while Bain secured a A$430 million loan, equivalent to about $300 million, to finance its Australian wealth management acquisition.

Geographic and Sectoral Focus

Middle Eastern capital deployment remains a key theme, although geopolitical headwinds are prompting some rebalancing among Gulf Limited Partners. Blackstone committed $250 million to UAE payments platform Advanced Digital Gaming Technology as part of a larger $1 billion regional bet, while Alterra backed General Atlantic’s investment in Wireless Logic, signaling continued Middle East interest in IoT businesses. Managers are advised to double down on the region to secure future fundraising success, especially as some reports suggest LPs are slashing their Africa budgets due to waning risk appetites. In the UK, firms are expanding sector platforms; Sun European invested in B&H Worldwide, an aerospace logistics firm, and is also reported to have bought a logistics business near Heathrow, while TowerBrook acquired sports apparel platform ID Unlimited to capitalize on jersey personalization trends.

Venture Capital & Early Stage Trends

The early-stage funding environment showed signs of bifurcation, with seed rounds skewing toward larger initial checks. Data indicates that only seed rounds of $10 million and above grew in 2025, suggesting a concentration of capital at the upper bands of early funding. This trend is mirrored in major VC fundraises, such as Kleiner Perkins securing $3.5 billion, split between $1 billion for early-stage KP22 and $2.5 billion for growth investments. Demonstrating interest in deep technology, YC showcased 16 interesting startups, including those focused on humanoid robots and doomscrolling redirection, while European quantum startups are attracting attention. Furthermore, the rise of AI continues to fuel valuations, evidenced by AI notetaking startup Granola achieving unicorn status with a $125 million Series C, and Harvey reaching an $11 billion valuation following a $200 million round co-led by GIC and Sequoia.

Specialized Investments and Corporate Development

Firms continued to make strategic add-on acquisitions, often leveraging technology platforms. Trinity Hunt-backed Allvia snapped up HR Pals to enhance its workforce services offering, and Sovereign-backed Affinia made a complementary acquisition following its initial investment in the founding firm last year. In the fintech space, Terminus Capital invested in insurtech firm Andesa to boost application development, and WPCG and HGGC are investing in RIA Verdence, with Emigrant Partners selling its stake as part of the deal. Tech exits included Viking Growth exiting workforce management provider Tamigo to Accel-KKR, while GTCR-backed Ascent Sports Group acquired sports tech firm LiveBarn. Meanwhile, large technology companies are also engaging in M&A; OpenAI has completed nearly as many deals in 2026 as it did all of last year, utilizing acquisitions to bolster its competitive position against rivals.