Private Equity 3 Days

Last updated: May 7, 2026, 8:30 PM ET

Dealmaking Momentum & Sector Activity

Private equity deal flow remains active across varied sectors, exemplified by buy-and-build strategies in services and healthcare. Brightstar invested in Simon Eye Holdings, with CEO Edward DiMartino retaining a significant ownership stake, while Silversmith-backed Med Tech acquired Avarion, a California-based provider of managed healthcare IT services. Further consolidation occurred in the safety sector as Pye-Barker scooped up AAA Fire Extinguisher Co., a fire protection and life safety provider, and subsequently acquired a security firm in Alpharetta, Georgia, bolstering its services portfolio. In the life sciences space, Frazier Healthcare-backed CareTria purchased digital pharmacy Cary Health to enhance its therapy initiation partnership services.

The industrials and infrastructure segments also saw significant transactions. Carlyle and Diversified Energy agreed to purchase Andarko Basin oil assets from Camino for $1.2bn, adding over 100 undeveloped inventory locations in Oklahoma, where Diversified already controls more than 450 sites. Elsewhere, SVP acquired the power generation facility New Frontera Holdings, having initially invested via a term loan before the company’s 2021 restructuring. On the divestiture front, Sentinel plans to sell manufacturer NSI Industries, which serves industrial and infrastructure end markets, for a reported $3bn.

European dealmaking saw targeted acquisitions aimed at creating regional hubs and specialized service platforms. Investindustrial launched the TACH Systems Group, a new Italian mechatronics hub, through the combination of acquisitions including TSM Sensors and High Tech Products. Simultaneously, Cinven will invest in Ongoing Warehouse, a Swedish firm providing cloud-native warehouse management systems, while Cinven-backed Alter Domus moved to acquire trustee and fund administration provider MSC Group. In the UK, Long Path Partners completed the take-private of Idox, a provider of geospatial data and information management software for the public sector.

Exits and Portfolio Company Sales

Exit activity demonstrated strong returns in specialized technology and asset management sectors. Siris is set to realize a threefold return on its investment in Equiniti, following its sale to Bullish, with Siris co-founder Frank Baker noting the potential for tokenized public equity securities mirroring demand for tokenized dollars. In a related move, Siris also acquired renewable energy services provider Takkion from Apollo, which had originally purchased Takkion in 2020. Meanwhile, THL Partners expects to sell its portfolio company AMI to Lattice Semiconductor for $1.65bn, with the transaction anticipated to close in the third quarter of 2026. In the water sector, KKR and XPV Water Partners are selling Axius Water to CRH, following the unification of nutrient management companies formed in 2019.

The process of testing the market for potential sales continues, signaling areas where GPs seek to realize value. MSouth is testing the buyout market for its HVAC and plumbing service provider USA Hometown Experts, which sources suggest could fetch a valuation exceeding $480M based on peer multiples around 16x EBITDA. Separately, Copley Equity Partners is exploring a sale for civil and structural engineering firm LJB, potentially achieving a 12x-14x EBITDA multiple. Furthermore, Baird Capital is testing the market for water treatment firm Cleanwater1, which has $40M in recent year EBITDA and could command a 15x-17x multiple upon exit.

Firm Strategy, Talent Moves, and Secondaries Market

Private equity firms are actively managing internal structures, expanding geographic reach, and adapting to market shifts, particularly concerning AI and liquidity. European GPs are increasing overseas dealmaking, with firms like Mutares having "relatively concrete plans" to open a Houston office, according to CIO Johannes Laumann. In terms of talent, ICG appointed Brant Gresham as managing director for the US West and Felipe Sotomayor as managing director for Latin America, based in Chile. Other appointments included Vistria tapping John Atkinson as an operating partner for its financial services team and Tortuga Growth Partners adding Michael O’Neil to a similar role, while O’Neil also serves as vice chair at an AI-first healthcare company.

The secondaries market is proving resilient, with uncertainty fueling activity. Geopolitical shocks are reportedly fueling record-breaking secondaries activity, and the market is increasingly viewed as vital for evergreen funds due to the uptick in private wealth, which now accounts for an average of 13% of client portfolios. However, industry leaders caution against equating broader private market access with better portfolio outcomes, as Harbour Vest CEO John Toomey warned against mistaking more products for actual portfolio improvement. Furthermore, the recent redemption rush in credit evergreens serves as a reminder that the democratization of private markets demands careful calibration.

Venture Capital, AI Investment, and Corporate Strategy

The venture capital ecosystem is seeing tactical shifts, particularly around AI funding, even as some traditional players retreat. Fidelity quietly shuttered its dedicated venture capital arm, contrasting with the aggressive AI investment seen elsewhere. Global venture funding in April reached $56bn, the third-largest monthly total in a year, substantially driven by billion-dollar AI rounds. Startups leveraging AI for specialized tasks attracted major capital; Fazeshift raised $17M in a Series A round to automate accounts receivable using AI agents, and Lithosquare secured $25M for AI-driven critical metal discovery.

Firms are developing specific investment theses around AI disruption. Clearlake, Thoma Bravo, and TPG shared strategies for navigating the AI era, while Thoma Bravo’s Tara Gadgil stressed that winners in software investing will possess "deep domain expertise" and trusted enterprise franchises amid AI disruption. In quantum computing, a startup from a Silo founder raised €25M, and Intel’s VC arm backed quantum startup Quantware with $178M for industrial-scale production. Meanwhile, a16z crypto closed a $2.2B fund, remaining focused on crypto despite some peers pivoting toward AI.

Corporate venture arms are also placing strategic bets. Amex Ventures detailed its strategy to back startups building autonomous commerce, focusing on specific fintech applications, while ElevenLabs added investors including BlackRock and Jamie Foxx as the voice AI company reached $500M in annualized recurring revenue. On the infrastructure side, Robinhood’s CEO Vlad Tenev reported that its new venture fund attracted over 150,000 retail investors seeking exposure to private tech companies like OpenAI and Stripe.