Private Equity 3 Days

Last updated: March 27, 2026, 11:30 PM ET

Private Equity Strategy & Market Evolution

The private equity industry is entering a more selective phase, moving away from a decade defined by cheap debt and rising multiples toward a focus on "substance" over mere structure, as firms grapple with market maturity. This strategic shift is mirrored by firms adjusting their internal operations, as seen when Speedinvest cut 10% of its team following a period of internal churn, reflecting broader pressures on operational efficiency. In parallel, dealmaking activity remains varied, with large financings this week led by OpenAI’s $10 billion raise, showing where significant capital is still flowing despite overall selectivity.

Sector Focus: Healthcare and Defense Tech

Healthcare remains a key area of PE focus, particularly in women’s health, where experts cite a potential "$1 trillion gap" attracting dealmakers, with firms like Astorg, Cinven, and Nordic targeting pathology assets. This specific interest in diagnostics is evidenced by the recent $8.9 billion sale of clinical trial data firm Clario, which was sold to Thermo Fisher by an investor group including Astorg and Nordic Capital. Simultaneously, defense technology is drawing substantial deployment, with Advent committing up to $1 billion into the sector, which includes funding Shield AI’s planned acquisition of Aechelon Technology Inc from Sagewind Capital.

Exit Activity and Portfolio Management

Firms are actively managing exits across various sectors, with Advent planning to divest hair care brand Olaplex to Henkel for $1.4 billion, which will see Olaplex delisted from Nasdaq. In telecommunications, HIG Capital is selling a Brazilian internet service provider to Claro for approximately $750 million, while in the professional services space, TowerBrook concluded a continuation fund for Eisner Amper, with Carlyle Alp Invest leading the transaction alongside Hamilton Lane. Furthermore, the industry is seeing specialist firms adopt new strategies, as Linden, a healthcare-focused PE firm, contemplates launching a secondaries strategy, joining a growing trend among buyout shops.

M&A and Add-On Activity

Dealflow continues across niche and industrial sectors, with Audax and Greenbriar co-selling airport services firm AGI to Lone Star after a joint holding period starting in June 2021. In software and services, Sovereign-backed Affinia made an add-on acquisition following its initial investment in LB Group in May 2023, while FPE acquired compliance platform Quor to build out a unified food software platform in the UK. In the digital space, Etna Capital snapped up software developer Code Road, led by CEO Dennis Odishoo, signaling continued appetite for digital engineering capabilities.

Infrastructure, Credit, and Real Estate Plays

Investment banks are bolstering advisory teams to manage the growing complexity of private capital transactions, as Evercore hired four individuals to build out its Europe-based credit secondaries team, including two hires from PJT. In infrastructure, Clearlake Capital is acquiring power grid service provider Qualus from New Mountain Capital, amidst rising power demand, while Brookfield and La Caisse agreed to a massive $9.7 billion take-private of Boralex to scale their renewables growth. Separately, Bonaccord made a minority investment in commercial real estate credit platform Prime Finance to strengthen its balance sheet and expand its credit offerings.

Geographic Focus: Middle East and Europe

While global risk appetites are shifting, managers who commit to the Middle East stand a better chance of success, as the region’s $5.4 trillion of sovereign wealth capital is currently turning inwards amid regional tensions. This regional focus is reflected in private investment, with Blackstone committing $250 million to a UAE payments platform as part of a $1 billion bet, and Alterra backing General Atlantic’s investment in Wireless Logic, signaling continued interest in the region alongside Montagu. In Europe, UK regions are being assessed for investability, even as dealmaking in consumer sectors like beauty faces pressure due to the Middle East conflict.

Venture Capital and AI Momentum

Despite broader market caution, venture funding remains strong in certain hubs, with Austin’s startup scene hitting all-time highs for venture funding. Early-stage funding dynamics show a skew toward larger rounds, as only seed deals of $10 million and above grew in 2025. Artificial intelligence remains a dominant theme, with companies like AI notetaking startup Granola achieving unicorn status on a $125 million Series C, and significant capital flowing into generative AI platforms, such as the $200 million round led by GIC and Sequoia for AI legal tech firm Harvey.

Secondaries Market and Firm Moves

The secondaries market continues to see talent shifting as firms position themselves competitively; Jefferies recruited senior GP-led talent from Lazard to enhance its advisory capabilities. Meanwhile, the trend of established buyout firms entering the secondaries space continues, exemplified by healthcare-focused Linden exploring a dedicated strategy. In fund formation, Pictet Alternative Advisors closed its inaugural direct private equity strategy focused on founder-led businesses at €403 million, while the European Investment Fund launched a massive €15 billion fund of funds aimed at supporting 100 growth-stage VCs.