Private Equity 3 Days

Last updated: March 30, 2026, 2:30 AM ET

Private Equity Dealmaking Shifts Amid Higher Cost of Capital

The private equity industry is entering a more selective phase following a decade characterized by inexpensive debt and expanding valuation multiples, forcing managers to prioritize substance over structure, according to industry analysis suggesting that "12 is the new 5" in deal timelines and requirements. This pivot toward deeper operational engagement is reflected in recent exits, such as Advent’s planned sale of the hair care brand Olaplex to Henkel for $1.4 billion, which will result in Olaplex delisting from Nasdaq and Advent achieving a full exit. Elsewhere in exits, HIG Capital is divesting its Brazilian internet service provider to Claro in a transaction valued at approximately $750 million, underscoring continued appetite for established infrastructure assets in emerging markets.

Sector Focus: Healthcare, Tech, and Infrastructure

Dealmakers are concentrating on specific sectors, with pathology assets attracting attention from firms including Astorg, Cinven, and Nordic Capital, as private equity eyes the growing women’s health space, estimated to have a "$1 trillion gap" needing investment, according to Kearney executives. In technology, SAP is moving to acquire Reltio, a firm backed by New View Capital, with the transaction expected to finalize in the second or third quarter of 2026, demonstrating ongoing consolidation in enterprise software. Furthermore, consumer health dealmaking is being shaped by trends surrounding GLP-1 drugs and preventative products, as evidenced by LDC completing its exit from occupational health business PAM Healthcare to Optima Healthcare.

Investment Banking & Credit Market Activity

Investment banks are actively building out specialized teams to navigate the changing credit environment, notably as Evercore hired four professionals to bolster its Europe-based credit secondaries team, including two hires sourced from PJT. This focus on credit is mirrored by private activity, where Bonaccord provided a minority investment into the commercial real estate credit platform Prime Finance, aimed at strengthening its balance sheet and expanding its institutional infrastructure. In corporate transactions, Advent agreed to invest in the engineering and consulting firm Atwell, with the deal anticipated to close in the second quarter of 2026, signaling continued interest in specialized professional services.

Venture Capital Trends and European Adjustments

Venture dealmaking showed pockets of strength, with Austin, Texas, startups achieving an all-time high in funding, cementing the city's status as a major startup hub. Globally, large funding rounds were led by technology, including OpenAI’s disclosure of raising an additional $10 billion, alongside defense sector companies securing capital amidst geopolitical concerns. Meanwhile, the European venture ecosystem is experiencing necessary retrenchment; for instance, Speedinvest reduced its team by 10% following a period of internal churn, even as some founders remain focused on emulating the Silicon Valley model, despite internal skepticism regarding the necessity of a purely U.S.-centric blueprint as noted by European observers.

Emerging Startup Themes and European Context

Investors are actively scouting for the next wave of innovation, with venture capitalists tracking startups at YC Demo Day across diverse fields ranging from futuristic concepts like Moon hotels to more tangible sectors such as cattle herding. The current environment suggests a shift toward practical application, as companies are now focused on scaling with AI from hype to tangible impact, which may influence where capital is deployed next. This focus on real-world utility contrasts with the perceived cultural pull of U.S. hubs, as some analysts suggest European founders should better leverage their second-mover advantage within the continent rather than solely focusing on replicating the Bay Area playbook.