Private Equity 3 Days

Last updated: May 5, 2026, 8:30 AM ET

Dealmaking Activity Heats Up Across Sectors

Private equity deal flow demonstrated continued activity across various verticals, including the sale of a semiconductor component maker and several strategic add-on acquisitions. THL Partners is divesting its portfolio company AMI to Lattice Semiconductor for $1.65bn, with the transaction expected to finalize in the third quarter of 2026, signaling exits in the specialized technology space. Elsewhere in infrastructure and industrials, KKR and XPV Water Partners are selling Axius Water, which was formed in 2019 to consolidate nutrient management assets, to CRH. In the lower middle market, Allied Industrial’s portfolio company Liberty Waste Solutions, a North Carolina provider of integrated waste services, completed a tuck-in acquisition of Randolph County Garbage Services, while CataCap-backed Thranekær snapped up engineering consultancy Ingeniørgruppen to bolster its presence in building and civil engineering consulting.

Exits and Growth Investments in Specialized Tech & Services

Firms are actively harvesting returns from specialized technology and service platforms, while new growth equity plays are targeting infrastructure and energy management. SK Capital completed two related exits, selling Noramco, Extractas Biosciences, and Purisys to Siegfried Holding, though the firm will retain its stake in US/Canada CDMO Halo Pharmaceuticals. Separately, SK Capital exited Phoenix Flavors & Fragrances Inc. to Turpaz Industries Ltd.. In growth equity, Bregal Milestone made a majority investment in Meteoviva, an AI-powered firm focusing on predictive building energy management, while CapMan Infra is acquiring a controlling stake in Nordic helicopter operator Heli Air Sweden, which provides services including utility and defense support. Furthermore, Carlyle bolstered its health tech footprint by acquiring Knack RCM and Equalize RCM, with the founders of both companies reportedly reinvesting a portion of their proceeds.

Valuations in Focus: Engineering and HVAC

The market is beginning to test concrete valuation benchmarks for niche engineering and building services firms, with some processes indicating strong bidder interest. Copley Equity is exploring the sale of civil and structural engineering firm LJB, with preliminary bids reportedly valuing the company at 12x to 14x EBITDA, suggesting premium multiples for specialized technical expertise. In the HVAC sector, Audax’s sale process for Nextech has advanced to the second round, with interested parties offering multiples around 15x EBITDA, potentially valuing the commercial HVAC company at $1.5bn, according to sources. This activity contrasts with another HVAC services exit, where SE Capital sold Sierra Platform, an essential home services firm focusing on plumbing and HVAC, to Redwood Services.

Secondary Market Sentiment and Investor Focus

Market participants are showing evolving priorities in the secondary market, shifting focus toward distribution metrics and standardized terms rather than just deal closure speed. Analysis of Secondaries Investor’s inaugural Global Market Survey suggests a detailed reading of sentiment signals, which aligns with observations from recent conferences where discussions centered on the fact that not all Distributed to Paid-in (DPI) capital is equivalent. Furthermore, market participants are moving toward 'best practice terms' in secondaries transactions, a shift noted by Morgan Lewis partner Joe Zargari, indicating a maturing focus on deal mechanics. This evolving landscape comes as industry leaders, including executives from Step Stone and LGT Capital Partners, were recently recognized among future PE leaders.

Venture Capital Driven by AI and Large Rounds

Global venture funding experienced a significant rebound in April, driven heavily by mega-rounds in the artificial intelligence sector, though European investment shows unique strategic divergence. Global venture funding surged to $56bn in April, marking the third-highest monthly total in the past year and demonstrating a 100% year-over-year increase, largely due to a small number of substantial financings. While Silicon Valley continues to invest broadly, European investors are strategically zagging on AI, preferring to back businesses focused on the less glamorous, foundational aspects of the technology, such as the pursuit of critical metals or building law firms supercharged with AI . Even established accelerators like Y Combinator are seeing alumni raise capital for AI-focused professional services.

Strategic Moves in Wealth Management and Consumer Health

Firms continued to build platforms in wealth advisory and consumer health through both acquisitions and new fund launches. Integrum, Lightyear, and Ontario Teachers’ are increasing stakes in wealth management advisor Allworth Financial, continuing the trend of institutional backing in fiduciary services. Meanwhile, Avista has launched Birchwell Consumer Health, immediately executing an acquisition of the therapeutic skincare brand Bag Balm from a seller group led by Gemini Investors. In the broader financial technology space, there are ongoing internal structural developments at major fintech players, such as the internal "founder factory" operations reported at Europe’s Revolut.

Sector Consolidation Continues in Home Services & Industrials

Add-on activity remained strong in the home services and industrial verticals, often involving existing financial sponsors maintaining or expanding their positions. Bain Capital, Sixth Street, and existing backer Harvest Partners have all committed capital to support Power Home Remodeling, with Harvest retaining the largest ownership stake. In managed IT services, Riata Capital-backed COEO Solutions acquired S-NET Communications to expand its offering of managed network and cloud services to multi-location enterprises. In the consulting space, Columna Capital is acquiring Evidenze Group from Buenavista Equity Partners, creating a full-service pan-European outsourced pharmaceutical services platform.

Legal Hurdles and Talent Signals

The complexities of M&A execution remain a concern, with founder expectations frequently cited as a primary reason deals collapse before formal negotiation. Beyond deal execution, the market is also grappling with talent and fund-raising announcements, with Katie Haun announcing the successful closing of $1 billion across new funds dedicated to backing crypto and blockchain startups. In professional services acknowledgments, professionals from firms including Step Stone and Kirkland & Ellis were named among the rising stars in the secondaries industry.