Private Equity 3 Days

Last updated: April 24, 2026, 11:30 AM ET

Dealmaking & Sector Focus: Healthcare and Industrials Lead Activity

Private equity interest remains concentrated in resilient sectors, with healthcare showing particular strength through numerous platform acquisitions and bolt-ons. In orthopedics, value-based care trends are drawing heightened interest, evidenced by Apollo’s prior $1.25 billion minority investment in the space, while firms like Archimed and Cinven are actively targeting the subsector. Further expansion in healthcare services saw TCV-backed Kipu Health snap up Team Recovery Technologies, a behavioral health software provider, and Mako launching Mangrove Health alongside veteran executives to focus on primary care. In the manufacturing and industrial carve-out space, AIP is acquiring Honeywell’s warehouse and workflow solutions business, while Triton-backed Flokk acquired Spec Furniture to bolster its presence across contract segments including healthcare and education.

Consolidation is also driving activity in specialized industrial services and chemistry. SK Capital snapped up Brothers International Food Holdings from Benford Capital Partners, while Behrman Capital acquired Metallizing Service Company Holdings to gain exposure to aerospace and defense solutions. On the services front, Allied Industrial-backed CES Power completed three acquisitions in Ireland—GH Energy Rental, Event Power, and Purecore—underscoring a drive for scale in power solutions, a theme echoed by Grain Management-backed Spectrotel merging with AireSpring to enhance managed network services. Meanwhile, German firm Mutares is considering a Houston presence following strong US visibility from its Sabic carve-out, indicating European GPs are increasing their North American footprint, especially in sectors like chemicals and testing assurance.

Tech, AI, and Infrastructure Investments

Technology transactions continue across various verticals, with AI integration remaining a key driver for both investment theses and M&A. Apax is focusing on companies that are either established AI winners or AI-neutral, navigating the current period of uncertainty, while Sierra, founded by Bret Taylor, acquired YC-backed Fragment, an AI customer service agent startup. In the infrastructure space, KKR is committing $1.5 billion to communications operator Vertical Bridge, with existing backers Digital Bridge and La Caisse also participating in the funding round. In the nascent but rapidly growing fusion energy sector, private investment surged from $10 billion to $15 billion over recent months, suggesting investors believe the science is finally approaching viability after decades of being "20 years away."

European activity shows targeted investment in resilience and digital infrastructure. Warburg Pincus is reportedly ready to write €200 million checks for European defense companies, launching a dedicated strategy focused on resilience, a theme Houlihan Lokey notes has led to "attractive valuations" for defense assets. Separately, Verda raised €100 million to build out a European hyperscaler, planning to hire over 100 staff, while Cloneable secured $4.6 million in seed funding to deploy agentic AI that shadows expert workers in utilities and infrastructure. Furthermore, L Catterton and Patricof have formed athlete branding firm CHAMP, signing major names like Kevin Durant and Justin Jefferson, signaling a specialized play in consumer branding.

Fundraising, Liquidity, and Investor Sentiment

Limited Partners (LPs) continue to seek diversification and clearer visibility into their private market allocations amidst ongoing geopolitical shifts affecting deal flow. Adams Street Partners successfully closed its sixth co-investment fund at $2.5 billion, while diversification was evident in Q1 2026 fundraising, where debut strategies, including three focused on single-asset continuation vehicles (CVs), ranked in the top 10 fundraises. However, investor appetite for certain structures faces friction; Japanese LPs report that credit secondaries present a challenging prospect due to information asymmetry and a lack of transparency. Furthermore, some LPs are finding themselves as forced sellers in CVs due to election periods detailed in side letters, and an Australian wealth manager warned that PE evergreens might have overpromised on liquidity management.

In management shifts and personnel movements, Manna Tree appointed Jessica Schmitt as managing director of capital formation to handle its global investor community, supporting growth driven by consumer interest in health. Meanwhile, consolidation is occurring at the manager level, as demonstrated by Standard Life’s merger with Aegon UK, forming a life and pensions giant with an asset portfolio nearing £480 billion, a transaction viewed as favorable for larger GPs. On the GP side, Pantheon received regulatory approval for its evergreen Global Infrastructure Secondaries Fund, while Ardian launched a similar evergreen feeder fund to tap Australian wholesale investors, showing a push toward evergreen structures to democratize access, a strategy also pursued by Temasek’s Azalea.

Secondary Markets and GP Strategy

The secondary market is seeing firms expand their mandates alongside GP-led activity. Coller is planning to expand into real asset secondaries and develop an insurance offering as it prepares for its next flagship fundraise under EQT ownership. In terms of fund structuring, the majority of CVs now employ waterfalls with both Internal Rate of Return (IRR) and Multiple of Invested Capital (MOIC) return thresholds, according to a report from Morgan Lewis. Separately, a governance issue surfaced in Nevada, where the PERS pension system granted an adviser discretion to manage its Clearlake assets, including potential liquidation via the secondary market, due to a conflict of interest. In technology M&A, Avance-backed Alchemy Technology Group acquired cybersecurity firm IOvations, while in consumer retail, Forward Consumer Partners’ Matt Leeds anticipates that "really good companies" will come to market in the next few months, with the firm aiming for control positions in six to eight deals from its second fund.