Private Equity 3 Days

Last updated: March 28, 2026, 2:30 PM ET

Private Equity Strategy & Market Selectivity

The private equity sector is reportedly entering a more selective phase as the era of cheap debt and expanding multiples concludes, suggesting a shift from prioritizing structure to focusing on operational substance. This cautious approach contrasts with the high-volume activity seen in early-stage venture, where seed funding growth is concentrating in outlier rounds above $10 million, while overall seed deal volume remains competitive. Concurrently, some established European venture firms are feeling the pinch; Speedinvest proceeded to cut 10% of its team following a period of internal organizational churn, reflecting the broader contraction in risk appetite outside of mega-deals.

Mega-Deals and Exit Activity

Dealmaking experienced an acceleration in large-scale transactions this week, headlined by OpenAI’s disclosure of raising another $10 billion, though other major financings spanned defense and AI startups. In exits, Advent is set to fully divest its stake in the Nasdaq-listed hair care brand Olaplex, selling the company to Henkel for $1.4 billion upon the transaction’s close. Meanwhile, HIG Capital is divesting a Brazilian internet service provider to Claro in a deal valued at approximately $750 million. Furthermore, in infrastructure services, Audax and Greenbriar are selling airport services firm AGI to Lone Star, concluding their co-investment made in June 2021.

Sector Focus: Healthcare & Specialized Tech

Specific vertical sectors are drawing intense private equity interest, particularly healthcare, where a reported '$1 trillion gap' is attracting dealmakers to women’s health investments, mirrored by the pending $18.3 billion take-private of Hologic by Blackstone and TPG. In the diagnostics space, firms including Astorg, Cinven, and Nordic Capital are pursuing pathology assets, a trend noted alongside consumer health dealmaking driven by GLP-1 drugs. Exits in this area include LDC completing its sale of occupational health business PAM Healthcare to Optima Healthcare. Separately, in enterprise software, SAP announced its intent to acquire New View Capital-backed Reltio, with closing expected in the second or third quarter of 2026.

Geographic & Strategy Expansion

Private equity firms are actively expanding capabilities and targeting specific geographic pockets, with Bank of America launching a dedicated Private Capital M&A Group to facilitate these exits. In Europe, Evercore has built out its credit secondaries team by hiring four professionals, including two defecting from PJT. The secondaries market is also seeing established buyout players migrate, as healthcare specialist Linden mulls launching its own secondaries strategy. In the Middle East, managers who commit capital to the region stand a better chance of success, evidenced by Blackstone committing $250 million into a UAE payments platform as part of a broader $1 billion regional bet.

Defense, Industrials, and Add-On Activity

Deal flow in defense and industrial technology remains high, with Advent committing to invest in defense tech firm Shield AI; proceeds from this will partially fund Shield AI’s planned acquisition of Sagewind Capital portfolio company Aechelon Technology Inc. Advent is also moving into the consulting space, planning an investment in engineering firm Atwell, expected to finalize in the second quarter of 2026. Within the UK, FPE-backed Point74 completed the purchase of compliance platform Quor to unify food software services. Meanwhile, add-on activity continues across portfolio companies, such as Sovereign-backed Affinia making an additional acquisition, following its initial investment in LB Group in May 2023.

Venture Capital Hotspots & AI Integration

Venture capital activity shows strong regional pockets, with Austin’s startup scene achieving an all-time high in funding for companies headquartered in the Texas capital. Investors are actively tracking emerging cohorts, with nearly a dozen VCs polling for sought-after startups at Y Combinator’s W26 Demo Day, where potential moonshot companies involving areas like space hotels were presented. Deeptech remains a focus, with investors hunting for the next DeepMind in Oxford amid a local technology boom. Furthermore, the integration of AI is moving from hype to tangible impact, as companies scale operations using the technology, while specialized firms like Brahma, a rival to Synthesia, are forecasting $100 million in revenue.