Private Equity 3 Days

Last updated: March 29, 2026, 11:30 AM ET

Private Equity Dealmaking & Sector Focus

The private equity sector is pivoting from decade-long reliance on cheap leverage toward a more selective, substance-focused investment phase, summarized by the sentiment that “12 is the new 5”. This shift is evident across several sector plays, with healthcare seeing concentrated interest; firms like Astorg, Cinven, and Nordic Capital are actively pursuing pathology assets, while Kearney projects a substantial $1 trillion opportunity in women’s health, evidenced by the pending $18.3 billion take-private of Hologic by Blackstone and TPG. Furthermore, deal activity shows diversification, with Advent announcing its planned investment into engineering and consulting firm Atwell, expected to close in the second quarter of 2026, contrasting with its simultaneous full exit from hair care brand Olaplex to Henkel for $1.4 billion.

Exits and divestitures are also coloring the market narrative, illustrating portfolio management across various geographies and sectors. HIG Capital is planning to sell its Brazilian internet service provider to Claro for approximately $750 million, while in a technology divestiture, SAP is set to acquire NewView Capital-backed Reltio during the first half of 2026. In the realm of specialized healthcare, LDC, the private equity arm of Lloyds Banking Group, finalized its exit from PAM Healthcare to Optima Healthcare, coinciding with broader trends favoring GLP-1 and preventative products in consumer health dealmaking.

Secondaries Market & Credit Expansion

The secondaries market is attracting new entrants and seeing strategic team builds as firms adjust to the slower M&A environment. Healthcare-focused Linden is currently mulling the creation of a dedicated secondaries strategy, joining a growing roster of buyout firms entering this less liquid space. Complementing this trend, Evercore has expanded its Europe-based credit secondaries team by hiring four new personnel, including two key hires arriving from PJT, signaling increased institutional focus on credit secondary transactions. Meanwhile, on the direct credit side, Bonaccord executed a minority investment into the commercial real estate credit platform Prime Finance to bolster its balance sheet and expand its overall credit platform.

Venture Capital Hotspots & Talent Management

The early-stage ecosystem shows continued regional strength, particularly in Austin, Texas, where venture funding for local startups reached an all-time high, maintaining the city’s momentum despite broader capital market constraints. At the seed stage, the latest Y Combinator W26 Demo Day attracted significant investor scrutiny, with VCs pointing to startups working on everything from Moon hotels to advanced cattle herding as the most sought-after ventures in the cohort. This startup excitement contrasts with cost-cutting measures seen elsewhere in the ecosystem; European venture firm Speedinvest has initiated layoffs, reducing its team by 10% following a sustained period of internal churn.

While early-stage funding remains vibrant, large-scale deals continue to be dominated by AI and defense sectors, with OpenAI disclosing an additional $10 billion raise leading the week’s largest financing rounds for growth-stage companies. Investors are actively hunting for the next major technology disruptor, with specific attention being paid to European AI talent pools, such as the Spanish AI startups identified by investors and deeptech firms in Oxford.

Geopolitical & Specialized Investment Thematic

Investment managers are looking at geopolitical events and niche technology areas to unlock growth opportunities. Some analysts suggest that the current tensions in the Middle East could potentially boost European climate startups by accelerating the push for energy independence and green technology adoption across the continent. Concurrently, firms are seeking proven AI models, such as tracking competitors to Synthesia like Brahma, which is forecasting $100 million in revenue. Managers seeking capital are also noting that General Partners who commit deeply to the Middle East region and cater specifically to local investor needs are better positioned for fundraising success in the current climate.