Private Equity 3 Days

Last updated: May 7, 2026, 11:30 AM ET

Dealmaking Activity & Sector Focus

Middle market deal flow showed continued activity across several sectors, though some sellers are testing market waters cautiously. MSouth is preparing to test the buyout market for USA Hometown Experts, an HVAC and plumbing service provider potentially fetching upwards of $480M based on peer multiples around 16x EBITDA, while Copley Equity is also exploring a sale for LJB, a civil and structural engineering firm, with expectations around a 12x-14x EBITDA valuation. In other deals, Siris is acquiring renewable energy services provider Takkion from its prior owner Apollo, and GI Partners is launching Rose Bio Solutions following its acquisition of a contract development and manufacturing organization business from Charles River Laboratories International. Furthermore, Sentinel plans to sell manufacturer NSI Industries for $3bn, a firm serving industrial and infrastructure end markets.

Consolidation continued in specialized services, particularly within healthcare and engineering consultancies. Sovereign-backed Bioscript is snapping up Triducive, a consultancy focused on clinical opinion in pharma, while Frazier Healthcare-backed CareTria acquires digital pharmacy Cary Health to bolster its therapy initiation partnership services. In the engineering space, Align Capital-backed Armko snaps up Kuhn & Associates, and CataCap-backed Thranekær is picking up Ingeniørgruppen, an engineering consultancy. Meanwhile, MBF Healthcare-backed Arete Health acquires two outpatient physical therapy groups, Virginia Rehabilitation & Wellness and Summerville Physical Therapy & Balance.

Industrial and infrastructure platforms saw several transactions, including Allied Industrial Partners investing in Trinity Industrial, an equipment rental firm where management retains meaningful ownership alongside Allied, and O2 investing in Atlas Asphalt. On the exit side, KKR and XPV Water Partners are selling Axius Water, which they formed in 2019 to unify nutrient management companies, to CRH, with a similar process underway as Baird Capital tests the market for water treatment firm Cleanwater1, which could fetch 15x-17x EBITDA. Separately, Platinum Equity acquires electric heating manufacturer Infratech from its founder and CEO, and SK Capital completes the sale of Noramco, Extractas Biosciences, and Purisys to Siegfried Holding.

European platforms focused on strategic builds and carve-outs. Investindustrial is forming an Italian mechatronics hub, TACH Systems Group, by combining acquisitions of TSM Sensors, High Tech Products, and Almec, while Cinven is investing in Ongoing Warehouse, a Swedish provider of cloud-native warehouse management systems. On the divestiture front, Mutares is selling Peugeot Motocycles back to its management team. In the UK, Long Path Partners has completed the take-private of Idox, a geospatial data and information management software provider for the public sector.

Technology, AI, and Growth Equity Funding

Venture funding remains concentrated in AI-driven enterprise solutions, though high valuations are leading some startups to secure large rounds rapidly. Insurance startup Corgi hit a $1.3 billion valuation just four months after its Series A, following a $160M Series B led by TCV. In AI infrastructure and applications, Fazeshift secured $17M in Series A funding to automate accounts receivable using AI agents, and Lithosquare raised $25M to apply AI toward discovering critical metals. Furthermore, Blitzy achieved a $1.4 billion valuation after raising $200M for its autonomous software development platform.

Early-stage funding saw significant backing for deep tech and specialized AI. A16z led a $16M seed round for Pit, a new AI startup from a Voi cofounder, while silo founder raised €25M for a venture aimed at creating the "Palantir of quantum computing." Quantum computing received broader attention as Intel's VC arm backed quantum startup Quantware with $178M for industrial-scale production, and Katie Haun raised $1B across new funds to continue backing crypto and blockchain startups, even as some focus shifts. Voice AI is also gaining traction, with ElevenLabs reporting $500M in ARR after securing investments from BlackRock and Jamie Foxx.

Investment strategies in software are increasingly centering on proprietary edge, according to major PE players. Firms like Clearlake, Thoma Bravo, and TPG shared that success in AI-era software investing requires 'deep domain expertise and franchises that are deeply trusted by their enterprise customers,' as noted by Thoma Bravo's Tara Gadgil. Separately, Amex Ventures is backing startups building autonomous commerce, seeking firms that align with their investment thesis in that area.

Secondaries Market & LP Dynamics

Volatility in broader markets is paradoxically fueling record activity in the secondaries space, which is being viewed as a source of necessary liquidity. Uncertainty is only fuelling secondaries activity, making it an increasingly important component for various structures. The market is also seeing convergence around standardized terms, as CV fee terms are standardizing rather than simply focusing on closing deals. Furthermore, secondary transactions account for an average of 13% of private wealth client portfolios, suggesting growing importance for evergreen funds managing increased retail capital flows.

The evolution of private market access for retail investors is raising concerns about portfolio quality versus quantity. Harbour Vest Partners' CEO warned against mistaking more products for better portfolios as the industry rushes to extend access. In the U.S., recent regulatory updates suggest a path toward clearer partnerships between private markets and American defined contribution capital. Separately, lessons from recent credit evergreen redemptions emphasize that the democratisation of private markets still requires careful calibration.

Firm Strategy, Personnel Moves, & Events

Private equity firms are actively expanding leadership teams to cover new geographies and sectors. ICG tapped Brant Gresham as its US West head based in California and Felipe Sotomayor as its Latin America managing director based in Chile. Other appointments include Vistria appointing John Atkinson as operating partner for financial services, Tortuga Growth Partners tapping Michael O’Neil as operating partner, and Tayeh Capital Group naming Scott Harrison as operating partner to focus on healthcare services platforms. On the promotions front, AnaCap promoted Alberto Sainaghi to partner after he joined as an associate in 2015.

Firms are also preparing for industry engagement, with TechCrunch Disrupt 2026 advertising exhibit space to reach 10,000 decision-makers, while also featuring panels where leaders from Coinbase and M13 will discuss M&A as an early-stage strategy. Meanwhile, Kainos promoted Cate Mason to Investor Relations director from her previous role as a senior associate. In the secondaries world, Hans-Christian Moritz of Munich Private Equity Partners characterized the industry's adjustment to new liquidity realities by drawing parallels to the five stages of CV grief, a theme also discussed at a conference.

Consolidations and Exits in Services

The business services sector saw several combinations, including a merger between two elevator maintenance companies, Specialized Elevator and Wyatt Elevator, both backed by Berkshire Hathaway. Elsewhere, NTC Group-backed Entwistle snaps up Hales from its founders, and ParkSouth-backed Infinite acquires Dukas Linden Public Relations to expand its communications platform. In the protein space, Kainos-backed Colorado Premium acquires Old Hickory Smokehouse, a supplier serving foodservice and retail channels.

The trend of vertical integration continued across various fields. PE-backed Pye-Barker acquires a security and fire alarm firm to expand its fire protection services, while Godspeed-backed NextPoint picks up UScontracting, a provider of mission enablement solutions for defense communities. In facility management, Boyne invested in H&B Facility Services to launch a commercial cleaning platform. In contrast to acquisitions, Snow Peak sells specialty fabrics manufacturer Dalco-GFT, retaining a minority stake alongside the CEO.

Platform Launches and Other Transactions

Several firms announced strategic launches or significant acquisitions to build out new platforms. Cinven-backed Alter Domus plans to acquire MSC Group, a fund administration services provider. In the building technology sector, Main Capital-backed Zig picks up Unik, a proptech firm developing housing management software. Furthermore, THL Partners plans to sell AMI to Lattice Semiconductor for $1.65bn, with closing anticipated in Q3 2026. In contrast, CapMan Infra is acquiring a majority stake in Heli Air Sweden, a Nordic helicopter operator providing aerial services including firefighting.