Private Equity 3 Days

Last updated: May 7, 2026, 5:30 PM ET

Dealmaking Activity & Sector Focus

Private equity dealmaking showed continued momentum across diverse sectors, with notable activity in energy, healthcare services, and enterprise software. Carlyle and Diversified Energy agreed to purchase Anadarko Basin oil assets from Camino for $1.2bn, securing over 450 drilling locations in Oklahoma for Diversified. In healthcare, Frazier Healthcare-backed CareTria acquired digital pharmacy CaryHealth, while Goldman Sachs-backed Xpress Wellness expanded its footprint by snapping up Midwest Counseling Services across rural and suburban communities. Further consolidation occurred in fire safety, as Pye-Barker scooped up AAA Fire Extinguisher Co, building on its existing fire protection platform in Georgia which also recently acquired a security firm.

Across the software and services vertical, specific carve-outs and buyouts proceeded despite broader market caution. THL Partners plans to divest its communication technology portfolio company, AMI, to Lattice Semiconductor for $1.65bn in a deal expected to close in Q3 2026. Meanwhile, Long Path Partners finalized the take-private acquisition of UK information management software provider Idox. In the industrial space, Investindustrial is creating a mechatronics hub by combining recent acquisitions—TSM Sensors, High Tech Products, and Almec—into the newly named TACH Systems Group.

Consolidation and Platform Builds

The trend of platform building through strategic add-on acquisitions continued to dominate M&A flows across middle-market service providers. PE-backed Pye-Barker continued its expansion in life safety services by scooping up AAA Fire Extinguisher Co, adding to its portfolio in Alpharetta, Georgia. Similarly, Kainos-backed Colorado Premium, a protein supplier, expanded its reach by acquiring Old Hickory Smokehouse. In specialized engineering consulting, Align Capital-backed Armko acquired Kuhn & Associates, while CataCap-backed Thranekær purchased Ingeniørgruppen to bolster its engineering capabilities in building and civil infrastructure.

In financial services and consulting, Sovereign-backed Bioscript absorbed Triducive, a consultancy focused on pharmaceutical clinical opinion, and Cinven-backed Alter Domus announced the planned acquisition of MSC Group, a fund administration services provider. Elsewhere, Brightstar invested in Simon Eye Holdings, ensuring the CEO, Edward DiMartino, retains a meaningful ownership stake alongside management.

Secondaries Market Dynamics & Liquidity

The secondaries market is showing resilience, with uncertainty in broader markets fueling increased transaction volume, according to industry participants. Geopolitical shocks are reportedly fueling record-breaking secondaries activity, as LPs seek liquidity. Industry veterans are navigating this new reality, with one expert drawing on the five stages of CV grief to describe the industry's adaptation. Furthermore, as private wealth has increased exposure, secondaries now represent an average of 13% of private wealth client portfolios, suggesting continued reliance on this market segment. However, fee terms are reportedly converging toward 'best practice terms', indicating that deal execution is becoming more disciplined even amid high activity.

Exits and Portfolio Returns

Firms are realizing significant returns on select assets, while others are testing the market for potential sales. Siris Capital is poised to achieve a 3x return on its investment in Equiniti following the sale of the firm to Bullish, with Siris co-founder Frank Baker citing future demand for tokenized public equity securities. In the energy space, KKR and XPV Water Partners are preparing to sell their unified nutrient management platform, Axius Water, to CRH, following a period where KKR made targeted acquisitions to scale the business. Meanwhile, Sentinel is preparing to sell manufacturer NSI Industries, which serves industrial and infrastructure markets, for a reported exit valuation of $3bn.

Personnel Moves & Firm Strategy

Key leadership and operational hires are signaling strategic focus areas, particularly within technology and specialized sectors. ICG made dual appointments, tapping Brant Gresham as MD and US West head based in California, and Felipe Sotomayor as MD for Latin America based in Chile. Several firms bolstered their operating teams: Vistria appointed John Atkinson as operating partner for financial services, and Tayeh Capital Group brought on Scott Harrison as operating partner to drive operational improvement initiatives. On the promotions front, MiddleGround elevated Alexander van der Have to partner in recognition of his work expanding the firm's European footprint, while AnaCap promoted Alberto Sainaghi to partner after his tenure as managing director since December.

Venture Capital & AI Investment Themes

Venture capital funds are actively deploying capital, with artificial intelligence and quantum computing remaining primary investment themes, even as some traditional VC arms retreat. Fidelity quietly shut down its VC arm, sources confirmed, contrasting with the aggressive AI focus elsewhere. Global venture funding reached $56 billion in April, marking the third-largest monthly total in a year, largely propelled by large AI rounds. A16z crypto announced a $2.2B fund dedicated to staying the course in crypto, even as some peers shift focus to AI. In AI infrastructure, Fazeshift secured $17M in Series A funding to automate accounts receivable using AI agents, and Bregal Milestone took a majority growth stake in Meteoviva, which uses AI for predictive building energy management.

Secondaries & Market Structure Evolution

The structure of private markets is evolving, with increased interest in evergreen vehicles and a focus on expanding reach responsibly. Munich Private Equity Partners' Hans-Christian Moritz suggests the industry is processing a new liquidity reality. The next generation of evergreen structures will be engineered around the asset itself, rather than simply the type of investor involved. This shift comes as firms like Texas Teachers pivot toward co-investments, even if it slightly impacts returns. Furthermore, the push to extend private markets access to broader investors risks creating more products without necessarily yielding better portfolios, according to Harbour Vest Partners' CEO.

Energy Transition & Infrastructure

Firms are investing in energy infrastructure and services, although some asset sales are occurring in parallel. Siris Capital acquired renewable energy services provider Takkion from Apollo, which Apollo originally purchased in 2020. In infrastructure, SVP acquired the power generation facility New Frontera Holdings, building on a prior first-lien term loan investment made prior to the company's 2021 restructuring. Meanwhile, European GPs are increasing overseas dealmaking, with firms like Mutares having "relatively concrete plans" to open an office in Houston to facilitate US deal sourcing.