Private Equity 3 Days

Last updated: March 28, 2026, 5:30 AM ET

Private Equity Strategy & Market Posture

The private equity world is entering a more selective phase, shifting focus from structural advantages built on cheap debt and rising multiples toward operational substance, as evidenced by the industry mantra of "12 is the new." This recalibration comes as some firms confront internal challenges, with Speedinvest cutting 10% of its team following a period of internal churn, signaling tighter operational discipline across the ecosystem. Simultaneously, market infrastructure is adapting to this new environment, as Bank of America launched a dedicated Private Capital M&A Group aimed specifically at unlocking exits for private equity portfolios, a function becoming increasingly necessary in the current transaction environment. Furthermore, the secondaries market is seeing personnel shifts, with Evercore building out its Europe-based credit secondaries team by hiring four individuals, including two from PJT, as firms jockey for position in liquidity solutions.

Sector-Specific Dealmaking & Investment Themes

Investment activity is concentrating in specialized sectors, notably healthcare and defense technology, while broader consumer deals face headwinds. In healthcare, PE firms are targeting the women’s health sector, which Kearney estimates has a "$1 trillion gap" for investment, with major players like Astorg, Cinven, and Nordic targeting pathology assets. This focus on specialized healthcare is also seen in the completed $8.9 billion sale of clinical trial data firm Clario to Thermo Fisher, a transaction previously held by an investor group including Astorg and Nordic Capital. On the technology and defense front, Advent is preparing to deploy up to $1 billion into defense technology, including a commitment to invest in Shield AI, part of which will finance Shield AI’s acquisition of Sagewind Capital portfolio company Aechelon Technology Inc. Separately, in the beauty vertical, despite conflict pressures affecting dealmaking, Semcap launched a dedicated beauty and wellness arm in partnership with Veralis Group, while Advent is also making moves in the sector, reflected in its Salt & Stone deal noted in a recent report.

Major Exits, Acquisitions, and Fund Activity

Firms are actively realizing value across various portfolio companies, juxtaposed against new platform acquisitions and specialized fund formation. Advent is set to fully exit its investment in Olaplex via a $1.4 billion sale to Henkel, which will see the hair care brand delisted from Nasdaq upon closing in the second quarter of 2026. In a different exit, HIG Capital is divesting its Brazilian internet service provider to Claro for approximately $750 million, while Audax and Greenbriar co-sold airport services firm AGI to Lone Star after a 2021 investment as reported. On the acquisition side, Clearlake Capital is acquiring Qualus from New Mountain Capital amid soaring power demand, providing a "handsome payout" for Cool IT Technologies employees whose parent company, KKR, is exiting that investment. Meanwhile, in the continuation fund space, TowerBrook completed a continuation fund for EisnerAmper, a transaction led by Carlyle Alp Invest, demonstrating continued LP interest in established asset lifecycles.

Geographic Focus and Infrastructure Bets

Geographic deployment is diversifying, with strategic capital flowing into the Middle East and specific European hubs, often centered around AI and infrastructure needs. Blackstone committed $250 million to a UAE payments platform as part of a $1 billion regional bet, while managers doubling down on the Middle East generally stand a better chance of success according to recent insights on the region's fundraising oasis. In Europe, Brookfield and La Caisse agreed to acquire Boralex in a $9.7 billion take-private deal to aggressively scale renewable energy growth. Furthermore, specialized investment continues in the UK, where FPE backed Point74 to acquire Quor, aiming to build the UK’s first unified food software platform, while UK regions outside London are increasingly cited as attractive investment targets by local analysts.

Venture Capital Dynamics and AI Funding

While overall dealmaking pace varies, mega-rounds led by AI companies continue to skew seed funding toward larger outliers, and regional VC ecosystems show strength. The week’s largest funding rounds were led by OpenAI’s disclosure of raising another $10 billion, indicating sustained appetite for foundational AI technology, with OpenAI itself having executed 17 acquisitions over the past three years to bolster its offerings as detailed by Crunchbase data. This AI interest is mirrored in European startup ecosystems, where investors are actively hunting for "the next Deep Mind" in areas like deeptech, particularly around Oxford, and tracking Spanish AI startups identified by local investors. In the US, Austin’s startup scene recorded an all-time high in venture funding, even as seed funding data shows that only deals in the upper bands—those $10 million and above—actually grew in 2025. AI is also driving valuations in specialized software, with notetaking startup Granola achieving unicorn status on a $125 million Series C round.

Credit, Secondaries, and Specialist Capital

The credit market is seeing specialized activity, including minority investments and firms exploring new strategies, while advisory movement signals competition for talent. Bonaccord made a minority investment in Prime Finance to bolster the commercial real estate credit platform's balance sheet and expand its offerings. Concurrently, sector-specialist buyout firms are increasingly entering the secondaries space, with healthcare-focused Linden mulling a dedicated secondaries strategy. Competition for deal flow expertise remains fierce in advisory, as seen by Jefferies recruiting senior GP-led talent from Lazard to strengthen its position. In fund formation, Pictet Alternative Advisors closed its first direct private equity strategy focused on founder-led businesses at €403 million ($440 , while the European Investment Fund launched a substantial €15 billion fund of funds intended to back 100 growth-stage venture capital firms.