Private Equity 3 Days

Last updated: May 3, 2026, 2:30 PM ET

Private Equity Dealmaking and Exits

The private equity sector is showing signs of potential improvement, though GPs are grappling with persistent valuation challenges amidst rising demand for distributions Key Trends. To address this, managers may need to adopt a more pragmatic approach to pricing assets GPs Face Valuations Problem. On the exit front, Partners Group maintains that successful business transformation and divestitures remain achievable in the current volatile market, emphasizing that quality is now paramount Positioning to Capture Exits. Meanwhile, the secondary market is gaining traction as volatility and reduced liquidity make the case for these transactions compelling, according to Pomona Capital’s CEO Secondaries Shine.

Exits are also taking shape in the healthcare space, where ArchiMed is set to acquire Esperion Therapeutics in a $1.1bn privatization deal, with closing anticipated in the third quarter of 2026. In Europe, AnaCap finalized the sale of the French private bank Milleis Group—which includes Milleis Banque and subsidiaries like Cholet Dupont Asset Management—to LCL and Crédit Agricole Assurances. Further consolidation is evident as private equity firms, including Goldman Sachs, Gryphon Investors, and Mid Europa, are reportedly targeting six different eye care platforms for potential platform investments and further consolidation in that sector.

Strategic Investments and Sector Focus

In platform investments, Searchlight Capital is moving to take a stake in B2B events organizer Closer Still Media, which is currently backed by Providence Equity Partners. Elsewhere, Neuberger is teaming up with KKR to back Flow Control Group, with KKR retaining majority ownership while Neuberger secures a significant minority stake. Separately, Inflexion is acquiring a minority position in Marktlink Capital, a firm that provides access to VC, PE, and private credit funds for European and North American families and entrepreneurs. Demonstrating a diversification into sports assets, Avenue Sports Fund invested in the professional soccer team The North Carolina Courage.

The acceleration of AI is influencing investment theses across the board, with TPG noting that the shift from a defensive to an offensive AI posture is proving to be a "positive weapon" for private equity, evidenced by its software portfolio recording 20% year-on-year growth despite market disruption. Investors are also tapping the VC pipeline Adams Street Partners to gain preferential access to high-quality AI opportunities emerging from the technology sector. This focus on cutting-edge tech contrasts with the capital concentration seen at the earliest stages, where the San Francisco Bay Area expanded its lead in U.S. seed funding in 2025, capturing an increasing share of both deal volume and dollars.

The Democratization of Private Markets

The expansion of private markets is being heavily underpinned by structural innovation aimed at broader access, often termed democratization. Lawyers at Kirkland & Ellis view the increasing role of private wealth solutions as the next logical step in the market’s evolution, driven by nuanced changes in fund structures and sponsor partnerships. Simpson Thacher & Bartlett contend that democratization is less about opening entirely new doors and more about restoring prior access to economic growth opportunities for a wider pool of investors. This trend is manifesting through structures like hybrid funds, which Ropes & Gray identifies as an increasingly attractive route for bridging public and private markets. Institutional LPs and smaller private wealth investors alike stand to benefit from embracing these solutions, according to Ardian’s private wealth head. Step Stone Group further asserts that individual investors are receiving institutional-quality access to private markets, signaling a qualitative improvement in offerings.

Venture Capital and New Entrants

While traditional PE grapples with valuations, venture funding saw a massive defense technology deal leading the pack this week, with space security startup True Anomaly raising $600M. This contrasts sharply with the direct-to-consumer space, where beauty brand Musely secured $360M in non-dilutive capital from General Catalyst specifically to fuel customer acquisition without equity dilution. On the firm formation front, a new private equity entity, Mako, officially launched, co-founded by former United Airlines chairman and CEO Oscar Munoz. Furthermore, the influx of capital into advisory services is being supported by Riverwood appointing Mac Hofeditz, formerly of Vector Capital Management, as managing director.

European Developments & Sector Deep Dive

In Europe, the growth of AI-focused startups is producing notable founders, with Sifted profiling the "lovable mafia" emerging from the continent's hottest AI firms Meet the Founders. This technological expansion requires careful navigation, particularly concerning compliance during international scaling efforts Navigating AI-Driven Expansion. Elsewhere in the region, hardware innovation continues to attract attention, with VCs tracking 15 hardware startups to watch in 2026. Meanwhile, one founder achieved a billion-dollar exit after successfully monetizing a niche product—leftover fish skins Founder's Billion-Dollar Exit. Finally, PE firms are assessing the highly fragmented eye care sector, looking for consolidation opportunities across Europe and North America.