Private Equity 3 Days

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

Venture & Growth Equity Investment Trends

Venture capital activity remains heavily concentrated in AI startups, evidenced by billion-dollar AI rounds that pushed global funding in April to $56 billion, marking the third-highest monthly total in the past year and representing a 100% year-over-year increase. Despite some mainstream venture firms pivoting toward artificial intelligence, a16z crypto is sticking to its blockchain roots, successfully raising a dedicated $2.2 billion fund. In parallel, established investors continue to back cutting-edge deep tech, with Intel participating in a $178M Series B for quantum startup Quantware to accelerate industrial-scale production, while AI voice firm ElevenLabs secured new funding from investors including BlackRock and hit $500M in annual recurring revenue.

European funding dynamics show divergence from the U.S., as some investors suggest Europe is "zagging" on AI priorities compared to Silicon Valley's "zigging," according to analysis from Sifted; however, European founders are still attracting capital, with autonomous software developer Blitzy raising $200M at a $1.4 billion valuation. Further demonstrating investor confidence in niche AI applications, Lithosquare secured $25M to employ AI for critical metals discovery, and Bregal Milestone made a majority growth investment into Meteoviva, an AI-powered building energy manager. On the more traditional side of VC, Katie Haun raised $1 billion across new funds dedicated to continuing her firm's focus on crypto and blockchain startups.

Private Equity Sector Consolidation & Exits

The private equity sector continued its aggressive pace of add-on acquisitions across diverse industrial and service sectors, illustrating a persistent strategy of platform building through M&A. In healthcare services, MBF Healthcare-backed Arete Health acquired two physical therapy providers, Virginia Rehabilitation & Wellness and Summerville Physical Therapy & Balance, while Goldman Sachs-backed Xpress Wellness purchased Midwest Counseling Services, expanding its urgent care and behavioral health footprint. Consolidation was also active in facility management and environmental services; Sterling Group-backed HLSG purchased Texas Textile Services, a linen laundry provider, and Allied Industrial-backed Liberty Waste Solutions picked up Randolph County Garbage Services in North Carolina.

Meanwhile, PE firms are actively executing sales across their portfolios. KKR and XPV Water Partners agreed to sell Axius Water, a nutrient management platform they unified in 2019, to industrial conglomerate CRH for an undisclosed sum, while THL Partners is set to divest AMI to Lattice Semiconductor for $1.65 billion, although that transaction is scheduled to close in the third quarter of 2026. In the specialty chemical space, SK Capital completed the sale of Noramco, Extractas Biosciences, and Purisys to Siegfried Holding, though it retains ownership of Halo Pharmaceuticals. Exits were also noted in the IT services space, where Salt Creek Capital sold IT Assist, a major Team Logic IT franchisee, to the larger franchisee network.

Dealmaking in Professional Services & Infrastructure

Firms specializing in administrative, engineering, and consulting services saw significant ownership changes and strategic investments over the past few days. Cinven-backed Alter Domus moved to acquire MSC Group, a fund administration services provider, signaling continued PE interest in regulated financial infrastructure. In engineering and environmental consulting, Copley Equity Partners is testing the market for its civil and structural engineering firm LJB, with sources suggesting bids may value the company at 12x-14x EBITDA. In related activity, Align Capital-backed Armko snapped up Kuhn & Associates, an engineering consultancy, and CataCap-backed Thranekær acquired Ingeniørgruppen, another engineering consultancy.

In the realm of specialized advisory, William Blair announced its acquisition of Inner Circle Sports, while Baird Capital successfully closed a single-asset CV for life sciences consultancy Blue Matter. Additionally, investment in infrastructure and essential services saw CapMan Infra acquire a majority stake in Heli Air Sweden, a Nordic helicopter operator providing aerial services for utilities and defense. The wealth management sector also saw action, as Integrum, Lightyear, and Ontario Teachers’ are increasing their investment in wealth advisor Allworth Financial.

Market Sentiment and Operational Focus

Investor sentiment in the secondary market appears to be stabilizing, with analysis of Secondaries Investor’s inaugural Global Market Survey suggesting that the market may have passed through the initial "five stages of grief" regarding market uncertainty. Simultaneously, legal experts caution that the current secondary market is prioritizing "best practice terms" rather than simply expediting deal closures, according to Morgan Lewis partners. Away from secondaries, operational strategy remains key, as indicated by the fact that founder expectations frequently misalign with M&A realities, often causing deals to fail before they begin. In portfolio management, RoundTable appointed Amardeep Kahlon as operating partner to accelerate value creation within its existing companies.

Healthcare platforms continue to attract significant private equity capital, often through roll-up strategies. European health unicorn Doctolib is planning a £100M UK expansion following its acquisition of London-based Medicus. In other platform scaling, Bain Capital, Sixth Street, and existing backer Harvest Partners are backing Power Home Remodeling, while Boyne launched a commercial cleaning platform built around its investment in H&B Facility Services. Furthermore, Avista unveiled Birchwell Consumer Health concurrent with its acquisition of the therapeutic skincare brand Bag Balm.