Private Equity 3 Days

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

Dealmaking Environment & Valuations

The dealmaking environment shows mixed signals, with European defense technology valuations being complicated by the ongoing "war effect," according to Houlihan Lokey, even as EQT’s third offer for Intertek was rejected. In the U.S., deal activity in the industrials sector faces challenges, with Capstone Partners highlighting a difficult market as several business services firms, including those shopped by Audax and Copley, test buyer appetite. Amid this complexity, the secondary market is reportedly thriving, with uncertainty fueling record secondaries activity, though some observers caution that the industry is moving through "the five stages of CV grief" as it adjusts to a new liquidity reality.

Sector-Specific Transactions: Industrials & Energy

Private equity activity across industrial and energy sectors remains active, evidenced by Carlyle and Diversified Energy agreeing to acquire Andarko Basin oil assets from Camino for $1.2bn, securing over 100 undeveloped inventory locations. In energy services, Siris is reportedly securing a 3x return on its investment in Equiniti following its sale to Bullish, with Siris co-founder Frank Baker citing demand for tokenized public equity securities alongside tokenized dollars. Further acquisitions include SVP taking ownership of power generation facility New Frontera Holdings, having previously invested via a 2021 restructuring, and Siris acquiring renewable energy services provider Takkion from Apollo, which Apollo had originally purchased in 2020.

Platform Buys & Consolidation Across Services

Firms are actively building out platforms through strategic tuck-in acquisitions across specialized services. PE-backed Pye-Barker continues its expansion in the fire protection sector by scooping up AAA Fire Extinguisher Co in Georgia, while a related report notes the same firm also acquiring a security and fire alarm firm. Elsewhere, Kainos-backed Colorado Premium acquired Old Hickory Smokehouse, a protein supplier for multiple channels, and NTC Group-backed Entwistle snapped up Hales. In healthcare IT, Silversmith-backed Med Tech made an acquisition of Avarion, a Valencia-based managed IT services provider, and Sovereign-backed Bioscript acquired consultancy Triducive to bolster its clinical opinion publication services.

Sector-Specific Transactions: Specialized Tech & Healthcare

In the life sciences and technology space, GI Partners launched Rose BioSolutions following the acquisition of a contract, development, and manufacturing business from Charles River Laboratories International. In the digital health arena, Frazier Healthcare-backed CareTria acquired digital pharmacy CaryHealth, and MBF Healthcare-backed Arete Health acquired two physical therapy providers in Florida. Meanwhile, THL Partners is planning the sale of AMI to Lattice Semiconductor for $1.65bn, with closing anticipated in the third quarter of 2026, and Main Capital-backed Zig purchased proptech firm Unik, which develops housing and property management software.

Firm Strategy & Personnel Moves

Private equity firms are making key organizational changes to support investment theses, particularly in specialized areas. ICG appointed Brant Gresham as US West head and Felipe Sotomayor as Latin America managing director, with Gresham based in California and Sotomayor in Chile. In personnel promotions, MiddleGround elevated Alexander van der Have to partner to expand its European footprint, and AnaCap promoted Alberto Sainaghi to partner after his tenure as managing director. Furthermore, Vistria appointed John Atkinson as operating partner for its financial services team, drawing on his recent experience leading a fast-growing unit at Marsh across the US and Canada.

Thematic Focus: AI Investment & Operational Overhaul

The surge of artificial intelligence development is prompting investment firms to adjust strategies and portfolio management. Major players like Clearlake, Thoma Bravo, and TPG are actively sharing approaches for navigating AI disruption, while others focus on software investment where deep domain expertise is key to success amid technological change, according to Thoma Bravo’s Tara Gadgil. Startups focused on AI-powered finance operations are attracting capital, such as Fazeshift raising $17M in Series A funding for its accounts receivable automation tools. Separately, firms are recognizing the need to rebuild operating models around AI, with Juniper Square advising managers to shift focus from outputs to outcomes.

Venture Capital & Emerging Tech Trends

Venture funding remained elevated, with global funding reaching $56bn in April, marking the third strongest month in a year, heavily influenced by multi-billion dollar AI rounds. In the quantum sector, a startup from a Silo founder secured €25M to build what is being called the "Palantir of quantum computing," while Intel's VC arm invested $178M in Quantware to scale production. In the broader AI ecosystem, ElevenLabs added BlackRock and Jamie Foxx as new investors while reporting $500M in annual recurring revenue. In contrast to broader tech interest, Fidelity quietly shut down its venture capital arm, sources confirm.

Secondaries, Liquidity, and Investor Access

The market for private market liquidity is demonstrating resilience, with secondaries activity being actively discussed as a solution to ongoing portfolio management pressures. The uncertainty caused by geopolitical shocks is increasingly driving record secondaries transactions, and these transactions are becoming more central to evergreen funds due to the uptick in private wealth allocations. However, the rush of redemptions seen in credit evergreens indicates that the democratization of private markets requires careful calibration. Meanwhile, the push to expand access is leading to new structures, with the next generation of evergreen vehicles being engineered around the asset itself rather than solely the investor type.

European Deal Activity & Talent

European GPs are showing increased appetite for overseas dealmaking, with firms like Mutares detailing concrete plans to open a Houston office, although overall April deal value dropped following a strong first quarter. In specific European consolidation, Investindustrial launched the TACH Systems Group mechatronics hub by combining acquisitions of TSM Sensors, High Tech Products, and Almec. Talent management remains a focus, as seen by the promotion of Cate Mason to IR director at Kainos and the appointment of Tayeh Capital Group's new operating partner Scott Harrison. Separately, the region is seeing investment in specialized sectors, such as Arāya Sie Fund closing its first £7.5M fund aimed at women-led startups amid a perceived tech "bro renaissance."

M&A Friction & Exit Readiness

Despite high levels of activity, friction points persist in the M&A process, particularly concerning seller expectations. A key reason deals fail before initiation is often misalignment between founder expectations and M&A realities. In preparation for potential exits, MSouth is testing the buyout market for USA Hometown Experts, an HVAC and plumbing service provider that could command a valuation exceeding $480M based on peer multiples near 16x EBITDA. On the sell-side, Sentinel plans to sell manufacturer NSI Industries for $3bn, a supplier serving industrial and infrastructure end markets.

Evolving Investor Mandates & Regulatory Shifts

Investor mandates are shifting in response to market trends and regulatory changes. Australian superfunds may soon see total returns benchmarked instead of measured by separate asset classes, a reform that could drive increased adoption of Total Portfolio Approach. In the US, private markets are moving closer to defined contribution capital, with recent updates paving the way for clearer partnerships. Separately, the fintech space sees activity from established players, as Amex Ventures details its thesis for backing startups building autonomous commerce, and Revolut’s alumni base continues to launch new ventures, including a firm that raised $6M for palm-scan payments startup.