Private Equity 3 Days

Last updated: May 5, 2026, 2:30 AM ET

Private Equity Dealmaking & Exits

SK Capital finalized the divestiture of its specialty ingredients businesses, completing the sale of Noramco, Extractas Biosciences, and Purisys to Siegfried Holding, though the firm will retain ownership of the U.S. and Canadian finished-dose-form CDMO, Halo Pharmaceuticals. In other major exits, SK Capital also successfully exited Phoenix Flavors & Fragrances to Turpaz Industries Ltd. in a transaction marking another full exit for the firm. Meanwhile, in the essential services sector, SE Capital sold HVAC and plumbing firm Sierra Platform to Redwood Services, which is building a platform focused on home services based in Memphis.

Activity in the middle market saw several platform acquisitions and add-ons across specialized sectors. Carlyle acquired health tech firms Knack RCM and EqualizeRCM, with the founders of both companies, Rajiv Sharma and Nagi Rao, choosing to reinvest a portion of their proceeds alongside the private equity giant. In the specialized industrial space, PE-backed Vasco acquired two court contractors—Howard B. Jones & Son Inc. and Court Surfaces of Florida—to expand its footprint in tennis and pickleball court construction. Furthermore, Grovecourt-backed Traffic & Mobility Consultants acquired Chindalur Traffic Solutions, bolstering its capabilities in transportation planning and traffic engineering in Florida.

The essential home services sector remains an area of intense competition, evidenced by Audax advancing bidders into the second round for Nextech, an HVAC service provider that sources suggest is being valued near 15x EBITDA, equating to a $1.5bn valuation. Concurrently, Bain Capital, Sixth Street, and Harvest Partners backed Power Home Remodeling, with existing investor Harvest Partners maintaining its position as the largest shareholder in the remodeling platform. Other specialized add-ons included Riata Capital-backed COEO Solutions snapping up managed tech provider S-NET Communications, which focuses on network and cloud services for multi-location enterprises.

Fundraising & Strategy Shifts

The fundraising environment continues to bifurcate, with established venture managers securing massive capital while placement agents navigate shifting LP sentiment. Katie Haun announced raising $1 billion across new funds, continuing her firm’s established strategy of backing crypto and blockchain startups, marking a significant capital infusion for that niche. On the strategy side, firms are actively seeking operational expertise; RoundTable tapped Amardeep Kahlon as an operating partner, where he will focus on accelerating value creation within portfolio companies and aiding in new deal evaluation. This search for specialized help extends to the secondaries market, where professionals from firms like Step Stone and LGT Capital Partners were recognized among the future leaders in the space.

Placement agents are responding to broader private equity headwinds by adapting their approach, as limited partners express specific demands regarding fund strategy and transparency, creating an evolving placement agent landscape. Meanwhile, in infrastructure and energy plays, IFM Investors-backed Mobius Renewables acquired biogas production activities from Air Liquide across the U.S., France, Norway, and Sweden, including six landfill gas-to-RNG sites in the U.S. and a controlling stake in Redo Biosolutions. In wealth management, Integrum, Lightyear, and Ontario Teachers’ committed new capital to advisor Allworth Financial, with the latter two firms being previous backers.

AI Integration and European Investment Trends

The integration of artificial intelligence into deal sourcing and portfolio operations is gaining traction, though European startups appear to be taking a distinct path compared to U.S. counterparts. Investors are reportedly betting that European startups possess the resilience to survive AI disruption, suggesting a more pragmatic approach to generative AI adoption. This contrasts with the U.S. focus, where VCs are closely watching emerging compute infrastructure companies, including 11 startups focused on the future of compute.

Specific funding rounds show AI being deployed in deep tech sectors; Lithosquare secured $25 million in funding specifically to utilize AI models for the discovery of critical metals. Furthermore, established technology firms are continuing inorganic expansion into AI capabilities, such as SAP agreeing to acquire German AI startup Prior Labs. The divergent strategies between Silicon Valley and Europe regarding AI deployment suggest that Europe is zagging on AI while Silicon Valley zigs, with some investors focusing on the less flashy, foundational elements of the technology, such as those betting on the "boring parts of AI".

Healthcare & Consumer Sector Activity

Private equity activity in the healthcare and consumer sectors included both new platform launches and niche acquisitions. Avista unveiled Birchwell Consumer Health in conjunction with the acquisition of Bag Balm, a Vermont-based therapeutic skincare brand, from a seller group led by Gemini Investors. The trend toward consolidation in essential services was also seen in the planned initial public offering of PE-backed GMR, a Lewisville, Texas-based provider of emergency medical services, which has set its pricing terms for the listing. Separately, Audax’s sale process for HVAC firm Nextech continues, signaling more expected deals in adjacent sectors like remodeling and roofing.