Private Equity 3 Days

Last updated: May 9, 2026, 8:30 PM ET

Dealmaking Dynamics & Sector Focus

Private equity deal activity saw a mixed picture across sectors, with significant M&A in healthcare and energy, while defense valuations faced complication due to geopolitical instability. In healthcare, Amulet Capital acquired TFP Fertility Group from Benefit Street Partners, integrating TFP’s network of 10 UK and Polish clinics, while Sovereign-backed Bioscript snapped up Triducive, a consultancy focused on clinical opinion for pharma. The remote healthcare trend attracted multiple entrants, with Goldman Sachs and Avesi Partners among five firms investing in telehealth companies, even as Siris Capital prepares to reap a 3x return on its Equiniti exit, which Siris co-founder Frank Baker suggested could extend to tokenized public equity securities.

Further diversification in deal flow included Carlyle and Diversified Energy acquiring Andarko Basin oil assets for $1.2bn, securing over 100 undeveloped inventory locations in Oklahoma, and SVP acquiring the power generation facility New Frontera Holdings following a 2021 restructuring. In the South, MSouth is testing the buyout market for USA Hometown Experts, an HVAC and plumbing service provider potentially valued at $480m or higher based on peers trading near 16x EBITDA. Elsewhere, Brightstar invested in Simon Eye Holdings, allowing the CEO and management team to retain a meaningful stake, while PE-backed Pye-Barker scooped up AAA Fire Extinguisher Co in Georgia.

In Europe, defense technology firms are drawing attention as a ‘new wave’ investment area, despite overall defense deal valuations being complicated by the "war effect" according to Houlihan Lokey. Simultaneously, European General Partners are increasing overseas dealmaking activity, with firms like Mutares openly planning to open a Houston office to facilitate US transactions, even as overall April deal value softened following a strong first quarter. In the Nordics, Norvestor is set to acquire Germany’s Debtist, a provider utilizing AI for receivables management and digital debt collection.

Fundraising, Secondaries, and Investor Strategy

The market for private capital deployment is showing strategic differentiation, with some managers focusing on impact and others on established growth areas, while investor sentiment leans toward risk-aversion in certain regions. Kiwoom Asset Management, the South Korean manager, indicated a plan for relatively risk-averse fund allocations, favoring North American and Western European funds. Conversely, Montana Capital Partners is deploying $40m across fund, secondary, and co-investments, specifically targeting climate and social impact mandates via a discretionary mandate. The secondary market continues to thrive amid geopolitical shocks, with uncertainty fueling record-breaking activity, offering a solution to the liquidity challenges some firms are confronting, as described by Munich Private Equity Partners’ Hans-Christian Moritz. Furthermore, Texas Teachers is pivoting toward co-investments, even if it incurs additional costs.

Emerging managers seeking initial capital are finding success in specific niches, such as Mother Ventures raising a $10M debut fund targeting mothers as consumers, and the women-led Arāya Sie Fund closing its first round at £7.5m amid a perceived tech "bro renaissance." The industry is also seeing organizational shifts, including Fidelity quietly shutting down its VC arm, while managers are actively promoting internal talent, such as MiddleGround promoting Alexander van der Have to partner to expand its European footprint, and ICG appointing Brant Gresham to lead US West operations.

Technology, AI Integration, and Corporate Moves

Artificial intelligence continues to dominate venture capital flows, with major corporations significantly backing ecosystem growth. Nvidia alone has committed $40bn to equity AI deals this year, contributing to a week where enterprise AI and space tech claimed the top ranks in major funding rounds. Startups leveraging AI for specific enterprise functions are securing substantial capital, exemplified by Fazeshift raising $17M in Series A for AI-powered accounts receivable automation, and Norvestor acquiring Debtist for its AI-driven collections platform. Even sales and marketing categories are seeing an "AI makeover," having pulled in approximately $2.7bn globally year-to-date across all stages.

However, the focus is not solely on large-scale funding; specialized AI tools are also gaining traction, such as a startup securing $9m to automate workflows for non-coders, and A16z leading a $16m seed round for Pit, a new AI venture from a Revolut co-founder. In contrast to the investment boom, some established tech players are adjusting strategy, as evidenced by DeepL cutting 250 jobs to maintain its competitive edge in the AI race. Corporate venture arms are also refining their theses; Amex Ventures is backing startups building autonomous commerce, while Revolut’s new bets division emphasizes agility and pivoting.

Portfolio Company Exits & Restructuring

Firms are realizing significant returns from portfolio companies, often through strategic sales or carve-outs, while other portfolio companies are expanding through add-on acquisitions. Siris Capital is poised to realize a triple return on its investment in Equiniti, whose sale comes as demand accelerates for remote healthcare services. In the energy services space, Siris also acquired renewable energy provider Takkion from Apollo, which Apollo had originally purchased in 2020. Meanwhile, GI Partners launched Rose BioSolutions following the acquisition of Charles River Laboratories International’s cell solutions and CDMO business.

Add-on activity in the services sector remains active: NTC Group-backed Entwistle snapped up Hales, and Main Capital-backed Zig acquired proptech firm Unik. In the US, Berkshire-backed Specialized Elevator and Wyatt Elevator merged, combining firms founded in 1997 and 2012, respectively. The broader industrials market, however, faces challenges, with Capstone Partners noting a challenged industrials deal market as several business services companies, including one shopped by MSouth, come to market.