Private Equity 3 Days

Last updated: March 28, 2026, 11:30 PM ET

Private Equity Strategy & Market Shifts

The private equity industry is entering a more selective investment phase, moving away from the era defined by cheap debt and high multiples toward an emphasis on "substance over structure," suggesting that the '12 is the new 5' mentality is taking hold. This strategic shift is occurring while major financial institutions are adapting their advisory services; for instance, Bank of America launched a dedicated Private Capital M&A Group specifically aimed at unlocking private equity exits in the current climate. Furthermore, specialist firms are increasingly looking toward the secondaries market for deal flow and liquidity, exemplified by the healthcare-focused firm Linden mulling a secondaries strategy, joining a growing cohort of buyout firms seeking entry into that segment.

Sector Focus: Healthcare & Defense

Dealmaking within the healthcare space remains a significant focus, particularly in areas showing large addressable market gaps, such as women’s health, which Kearney estimates represents a nearly "$1 trillion opportunity" for investment. Specific areas drawing intense interest include pathology assets, where firms like Astorg, Cinven, and Nordic Capital are actively pursuing transactions, alongside specialized care roll-ups, such as Olympus Partners backing EyeSouth in its acquisition of Aslett-Kurica Eye Center. Simultaneously, the defense technology sector is attracting substantial capital, with Advent committing to Shield AI, where a portion of the investment will fund Shield AI’s planned purchase of Sagewind Capital’s portfolio company, Aechelon Technology Inc.

Deal Activity: Exits and Acquisitions

Firms are actively managing portfolios through both sales and strategic add-on acquisitions across diverse industries. Advent is moving to exit its Olaplex stake, planning to sell the hair care brand to Henkel for $1.4 billion, which will result in Olaplex delisting from Nasdaq upon closing in the second quarter. In infrastructure and consulting, Advent is also set to invest in Atwell, an engineering and consulting firm, with the transaction anticipated to conclude in the second quarter of 2026. Elsewhere, HIG Capital is selling a Brazilian internet service provider to Claro for approximately $750 million, while in the aviation services vertical, Audax and Greenbriar sold AGI to Lone Star after jointly investing in the firm in mid-2021.

Geographic & Vertical Expansion

Private equity interest continues to flow into specific geographic hubs while simultaneously expanding into niche verticals. In the Middle East, managers who commit capital to the region and cater to investor needs stand a better chance of success in the current fundraising environment, a trend mirrored by Blackstone’s $250 million commitment to a UAE payments platform as part of a broader $1 billion regional bet. Within the UK, software consolidation is evident, with FPE-backed Point74 buying Quor to establish the UK’s first unified food software platform, adding compliance capabilities. In the U.S., specialized credit platforms are drawing investment, as seen when Bonaccord made a minority equity injection into Prime Finance to bolster its balance sheet and expand its credit offering.

Venture Capital & Early Stage Trends

The early-stage funding world shows divergence in activity, with seed funding becoming intensely competitive, though larger outlier rounds are holding up; data indicates that only seed deals valued at $10 million and above saw growth in 2025. This competitive environment is visible at major accelerator demo days, where investors aggressively pursued startups at YC W26 Demo Day, focusing on concepts ranging from "Moon hotels to cattle herding". Furthermore, specific geographic tech hubs remain strong, with Austin, Texas, reporting that venture funding for its local startups has reached an all-time high. In parallel with general venture heat, deep tech and AI startups are commanding attention, with investors actively seeking the "next Deep Mind" in areas like Oxford, and firms like Brahma projecting $100 million in revenue while competing with established players like Synthesia.

Firm Restructuring & Specialized Finance

As the industry recalibrates, some firms are undergoing internal adjustments, such as Speedinvest cutting 10% of its staff following internal churn, reflecting broader pressures in the technology investment landscape. Meanwhile, the infrastructure for deal execution and secondary transactions is expanding; Evercore is building out its Europe-based credit secondaries team, hiring four professionals, including two from PJT. In capital deployment, Bain secured a substantial A$430 million loan, equivalent to about $300 million, specifically to finance its acquisition of an Australian wealth management firm. The increasing role of technology is also apparent, with anecdotes suggesting that AI is already influencing investor relations processes, as noted in reports on placement AI-agents.