Private Equity 3 Days

Last updated: May 3, 2026, 11:30 AM ET

Private Equity Dealmaking & Exits

Deal activity saw several significant moves across sectors, highlighted by ArchiMed taking Esperion Therapeutics private in an $1.1 billion transaction slated for completion in the third quarter of 2026, signaling continued appetite for healthcare carve-outs. Concurrently, AnaCap finalized the divestiture of French private bank Milleis, selling the group—which includes Milleis Banque and its subsidiaries like Cholet Dupont Asset Management—to LCL and Crédit Agricole Assurances. In other exits, Searchlight is preparing an investment in B2B events firm CloserStill Media, currently backed by Providence Equity Partners, while Neuberger will take a significant minority stake in Flow Control Group, with incumbent KKR retaining majority ownership.

Sector Focus: AI, Health, and Infrastructure

The accelerating integration of Artificial Intelligence continues to shape investment theses, with TPG reporting that its software portfolio expanded 20% year-on-year, viewing the AI shift from a defensive posture to an offensive strategy as a clear advantage. Limited Partners, however, are demanding greater clarity from managers regarding how they plan to manage the resulting "Saa Spocalypse" disruption as noted by PE International. In the health sector, PE firms are actively targeting consolidation opportunities, with Goldman Sachs, Gryphon Investors, and Olympus among the firms eyeing six platform investments within the eye care industry. Furthermore, Clearlake closed its buyout of Qualus, a power and electric services grid platform, from seller New Mountain Capital, reflecting interest in essential infrastructure assets.

Fund Formation and New Entrants

The ecosystem saw the formal launch of a new management entity, Mako, co-founded by former United Airlines Chairman and CEO Oscar Munoz, signaling continued talent migration into the asset class. Meanwhile, Inflexion moved to acquire a minority stake in Marktlink Capital, a firm that grants entrepreneurs access to private equity, venture capital, and private credit funds across North America and Europe. In personnel moves, Riverwood announced the appointment of Mac Hofeditz as managing director, formerly of Vector Capital Management, and Beach Point added Fred Storz as a managing director based in its New York office.

The Democratization of Private Markets

A significant theme across the industry involves the expansion of private markets access to a broader investor base, moving beyond traditional institutional LPs. Ardian suggests that private wealth solutions benefit both longstanding LPs and smaller investors, a sentiment echoed by law firms discussing structural shifts. Simpson Thacher & Bartlett frames this democratization not as granting new access, but restoring prior access to economic growth opportunities. Legal experts from Kirkland & Ellis observe that nuanced innovations in fund structures are facilitating this expansion, while Ropes & Gray points to hybrid fund structures as an increasingly attractive route for bridging the public and private spheres.

Venture Capital and Non-Dilutive Financing

While traditional PE grapples with exit pricing and liquidity, the venture side saw concentrated capital flows and novel financing methods. Musely, a direct-to-consumer brand focused on skin, hair, and menopause care, secured $360 million from General Catalyst utilizing a non-dilutive structure, intended to aggressively fund customer acquisition efforts. In contrast, large-scale venture deals were sizable, with defense technology leading the week’s funding rounds, capped by a $600 million raise for space security startup True Anomaly. Elsewhere, the concentration of early-stage capital remains geographically centered, as the San Francisco Bay Area further expanded its dominance in U.S. seed funding during 2025, capturing an increasing share of both deal volume and dollar value.

Market Outlook and Manager Positioning

Despite valuation pressures that may force general partners to adopt a more pragmatic approach to pricing to meet rising LP distribution demands as noted by PE International, there is cautious optimism regarding the future. Partners Group asserts that building, transforming, and exiting quality businesses remains possible even in volatile conditions. Furthermore, managers with specific technological mandates are positioning for upside; Adams Street Partners believes investors with preferential access to high-quality AI opportunities are well situated given the accelerating pace of innovation. Supporting the secondary market thesis in this environment, Pamona Capital CEO Michael Granoff noted that volatility and lack of liquidity bolster the case for secondaries. Finally, Avenue Sports Fund made a specific allocation into professional soccer team The North Carolina Courage.