Private Equity 3 Days

Last updated: April 23, 2026, 5:30 PM ET

Dealmaking Momentum & Sector Focus

Private equity deal flow remains active across several verticals, with significant consolidation observed in healthcare and industrial services. In healthcare, TCV-backed Kipu Health acquired behavioral health software provider Team Recovery Technologies, while Mako launched new firm Mangrove Health with veteran executives to focus on primary care. Further consolidation in healthcare services saw PE-backed Alcami move to acquire CDMO Tjoapack, and Aqua Dermatology purchased Steele Dermatology in Florida. On the industrial front, Allied Industrial-backed CES Power completed three acquisitions in Ireland (GH Energy Rental, Event Power, and , and Triton-backed Flokk picked up Spec Furniture to bolster its contract segments, including healthcare and education.

Firms continued executing strategic carve-outs and platform builds across various sectors. AIP agreed to acquire Honeywell’s warehouse and workflow solutions business in a major carve-out operation, while HIG Capital is preparing to collect first-round bids for Capstone Logistics, which sources suggest generates $215 million in EBITDA and might be too large for a strategic buyer. In the infrastructure space, KKR committed $1.5 billion toward communications infrastructure owner Vertical Bridge, alongside existing backers Digital Bridge and La Caisse. Meanwhile, the fire safety pipeline appears robust, driven by data center build-outs and regulatory stability, with the lower mid-market seeing 'highly active' M&A, according to Lincoln International Vinod Stalam.

Thematic Investments: Defense, AI, and Energy

The defense sector is experiencing a noticeable surge in activity, attracting significant capital deployment, which is viewed positively by both LPs and GPs Houlihan Lokey noted. Specifically, Warburg Pincus is preparing to write €200 million checks for European defense, security, and strategic resilience companies, a move echoed by the fact that defense assets are reportedly hitting 'attractive valuations' according to Houlihan Lokey. In parallel, European firms are betting heavily on AI integration; Apax is targeting companies that are 'ideally AI winners,' while Cloneable raised $4.6 million in seed funding to deploy agentic AI for replicating expert knowledge in utilities and infrastructure.

Alternative energy and infrastructure funds are also seeing fresh capital injections, often utilizing evergreen structures. Pantheon and Ardian launched private wealth products dedicated to infrastructure, with Pantheon securing regulatory approval for its evergreen Global Infrastructure Secondaries Fund. In the power generation space, Excelsior-backed Lydian Energy acquired Hanwha Renewables’ Bess Atlas North portfolio, expanding its utility-scale power infrastructure operations. Separately, investment in fusion energy is accelerating, with private investment surging from $10 billion to $15 billion in just months, reflecting a belief that the science may finally be catching up after decades of being "20 years away."

Fundraising Trends & LP Dynamics

Limited Partners are driving diversification, leading to novel fundraising strategies ranking highly in Q1 2026. Four debut strategies, including three focused on single-asset Continuation Vehicle (CV) investments, placed within the top 10 fundraises, suggesting LPs are increasingly open to these structures. This evolving relationship is further evidenced by Step Stone noting that LPs are becoming more amenable to GP-led transactions according to PE International. On the capital raising front, Adams Street Partners closed its sixth co-investment fund at a $2.5 billion hard cap, and Baird Capital secured $450 million for its third global fund.

However, structural concerns persist regarding liquidity and governance in certain fund types. An Australian wealth manager warned that PE evergreens may have "overpromised on liquidity," urging the industry to better manage redemption events in unlisted funds Gavin Ezekowitz stated. Furthermore, LPs are utilizing side letters to gain greater visibility into CVs, as some are becoming forced sellers due to lengthy election periods in those structures Morgan Lewis reported. Meanwhile, pension funds face governance scrutiny; Nevada PERS handed control of its Clearlake Capital assets to an adviser due to a conflict of interest, granting the adviser discretion, including potential liquidation via the secondaries market.

Secondaries Market & Firm Strategy

The secondaries market is gaining prominence as a tool for managing capital, with firms actively expanding their offerings. Pantheon is set to expand into real asset secondaries under EQT’s ownership, planning its next flagship and credit raise for 2026. Partners Capital is also encouraging clients to participate in the growing secondaries sphere as a fixture of managing their capital, even if historical return mechanisms are less attractive presently as noted by Secondaries Investor. Sentiment in the space remains positive overall, though friction points persist regarding secondaries. In contrast, Temasek’s Azalea is utilizing an evergreen structure in an effort to democratize private equity access for investors as detailed by PE Insights.

Geopolitical tensions are beginning to directly influence institutional investment flows and deal strategy. International developments are actively reshaping both deal activity and fundraising inflows for private equity firms PE International observed. This focus on resilience is present in defense M&A, but also in corporate structuring, as seen with Standard Life’s merger with Aegon UK, forming a pensions giant with an asset portfolio valued near £480 billion, reflecting broad consolidation among both LPs and managers. In exit planning, Sycamore Partners is exploring a potential 2027 London IPO for Boots, aiming for an exit valuation exceeding $8 billion.

Venture Capital & Growth Equity Activity

While overall venture funding shows mixed signals, AI and specialized vertical solutions continue to attract significant seed capital. For founders, Marc Schröder of MGV advised that the current opportunity lies in creating vertical, AI-driven solutions for specific industrial problems to secure successful fundraising. In specific funding rounds, AI-powered fintech Seapoint raised €7.5 million from Stripe alumni, and Schematic secured $6.5 million to simplify pricing and packaging for software and AI companies. In the specialized technology space, Behrman Capital scooped up Metallizing Service Company Holdings, which serves aerospace and defense applications.

In the consumer space, dealmaking continues, with Forward Consumer Partners' Matt Leeds indicating that there are 'really good companies' coming to market within the next few months, as Forward intends to execute six to eight control deals from its second fund he shared with PE Hub. Meanwhile, L Catterton and Patricof formed athlete branding firm CHAMP, securing partnerships with 250 athletes including Kevin Durant and Justin Jefferson. In fixed income technology, FTV Capital invested in fintech Valitana to accelerate its AI roadmap and expand within structured credit markets like CMBS and ABS. Separately, the industry is preparing for major industry gatherings, with the first StrictlyVC event of 2026 scheduled in San Francisco on April 30, bringing together VCs and founders.