Private Equity 3 Days

Last updated: April 23, 2026, 2:30 PM ET

Fundraising & Investor Sentiment

Fundraising diversification gained traction in early 2026, with four debut strategies, including three focused on single-asset continuation vehicles (CVs), ranking among the top ten Q1 fundraises as limited partners (LPs) sought varied exposures. This trend coincides with institutional managers preparing for new flagship cycles, as Coller plans to launch its next fundraising cycle in 2026, intending to expand into real asset secondaries and build out an insurance offering alongside its continued expansion under EQT’s ownership. Further demonstrating scale, Blackstone’s secondaries platform crossed the $100 billion Assets Under Management (AUM) milestone in the first quarter, according to President and COO Jonathan Gray. However, structural friction points remain in the market; some LPs are becoming forced sellers in CVs due to extended election periods outlined in side letters, prompting LPs to seek greater visibility into these arrangements.

Secondaries & Liquidity Focus

The secondaries market continues to become a fixture for institutional advice, with OCIO firms encouraging client participation despite historical return mechanisms being less attractive currently. Meanwhile, institutional mandates are adapting to structural changes, as evidenced by Nevada PERS handing control of its Clearlake Capital assets to an adviser, granting discretion that includes liquidating assets via the secondaries market due to a conflict of interest. Infrastructure investment is also seeing structural adaptation, with Pantheon and Ardian launching private wealth products dedicated to the sector, including Ardian’s evergreen feeder fund targeting Australian wholesale investors. Despite this growth, Australian wealth managers are issuing warnings that private equity evergreens may have overpromised on liquidity, stressing the industry’s need to better manage redemption events in unlisted funds.

Deal Activity: Consolidation & Sector Focus

Deal volume remains high across several verticals, characterized by consolidation and strategic carve-outs. In the consumer space, L Catterton and Patricof formed the athlete branding firm CHAMP, securing partnerships with 250 athletes including Kevin Durant and Justin Jefferson to accelerate brand awareness. Consolidation is also evident in the insurance and financial services sectors, where First Eagle completed the buyout of Diamond Hill Investment Group for $175.00 per share in cash, and GTCR acquired Fiduciary Trust Company, bringing on former Wilmington Trust chair Doris Meister as executive chair. The life and pensions sector is undergoing material consolidation, exemplified by Standard Life’s merger with Aegon UK, which creates a giant with approximately £480 billion in assets, a development seen as beneficial for larger GPs.

Sector Deep Dive: Defense, Industrials, and Healthcare

The European defense sector is experiencing a surge in deal flow driven by investor focus on resilience themes, making valuations attractive for buyers. Warburg Pincus is ready to deploy €200 million checks specifically for European defense, security, and strategic resilience businesses. Industrials saw significant movement, with AIP agreeing to acquire Honeywell’s warehouse and workflow solutions business in a carve-out transaction. In healthcare, HIG Capital is preparing to sell Celerion, which offers clinical monitoring to pharma customers, to THL Partners, while a new primary care firm, Mangrove Health, launched following an investment from Mako, founded by veteran executives Elena Castañeda and Dr. Emily Maxson. Furthermore, TA Associates is in talks to take Advanced Medical Solutions, a tissue-healing technology developer, private.

Technology, AI, and Specialized Verticals

The technology investment thesis is increasingly centered on AI integration, with firms like Apax seeking companies that are "ideally AI winners, and at best, AI-neutral." Startups focused on AI tooling are attracting seed capital, such as Cloneable raising $4.6 million to clone expert worker knowledge into autonomous agents for utilities, and Schematic securing $6.5 million to streamline pricing for software and AI firms. In adjacent technology sectors, behavioral health software provider Kipu Health, backed by TCV, acquired Team Recovery Technologies. Meanwhile, the energy transition saw Excelsior-backed Lydian Energy acquire Hanwha Renewables’ Bess Atlas North portfolio, bolstering its utility-scale power infrastructure development. Geopolitical tensions are shaping deal activity, which is forcing firms like Warburg Pincus to seek European defense assets.

Deal Making in Infrastructure & Consumer

Large-scale infrastructure deals continue to draw major capital commitments, with KKR securing a $1.5 billion investment into communications infrastructure operator Vertical Bridge, alongside existing backers Digital Bridge and La Caisse. Separately, KKR also drew a commitment of capital from the UAE’s $30 billion ALTÉRRA fund for its global climate transition strategy. In the consumer sector, Forward Consumer Partners is targeting six to eight control deals from its second fund, as Matt Leeds anticipates "really good companies" coming to market Separately, L Catterton and Patricof’s new venture CHAMP aims to leverage athlete involvement for consumer brand growth.

Mid-Market and Roll-Up Strategy

The mid-market remains active with specialized roll-up plays, particularly in fragmented service sectors. The roofing sector is seeing significant private equity interest, with firms like Huron Capital, Osceola Capital, and Sumeru Equity Partners pursuing renovation, roll-up, and AI integration strategies. In fire safety, the pipeline is attracting investment due to revenue visibility and regulatory stability, exemplified by HIG-backed Andwis acquiring Senseco Systems, its 29th acquisition since 2023. In distribution and manufacturing, SK Capital snapped up Brothers International Food Holdings from seller Benford Capital Partners, while Bessemer-backed Tencarva acquired WWater Tech, a distributor of process equipment.

Corporate Governance and Term Trends

The structure of carried interest in CVs is evolving, with a majority of CVs now utilizing both Internal Rate of Return (IRR) and Multiple on Invested Capital (MOIC) thresholds within their waterfall calculations, according to a forthcoming analysis from Morgan Lewis. This complexity in governance is intertwined with liquidity concerns, as some LPs face involuntary sales in CVs due to the duration specified in election periods. Separately, in the venture space, despite the record unicorn creation in March led by robotics and AI infrastructure, investors are being advised to focus on building vertical, AI-driven solutions for real problems, as suggested by MGV partner Marc Schröder.