Private Equity 3 Days

Last updated: May 14, 2026, 5:30 AM ET

Deal Activity & Exits Show Resilience Amid Market Shifts

Overall deal value in the first quarter of 2026 rose despite a noticeable dip in transaction volume, suggesting private equity firms are focusing on larger, more strategic acquisitions in the current tougher startup financing environment Private equity deals were fewer but bigger. This trend is mirrored in several high-value exits, including American Securities selling processing equipment provider CPM for $2.1bn after a 2018 investment, and Gen Nx360 achieving an exit exceeding $2bn for Precision Aviation Group Gen Nx360 sells Precision Aviation Group. In contrast, the public markets are showing mixed signals for PE-backed entities; KKR-backed Global Medical Response listed below its initial price range, raising $479M in a scaled-back New York IPO, although other PE-backed firms like GMR successfully went public PE-backed GMR goes public.

European PE Activity: Buyouts, Exits, and Fund Strategy

European private equity saw significant activity, including Verdane completing its buyout of Augmentum Fintech, marking a rare take-private of a UK investment trust Verdane takes Augmentum Fintech private. Elsewhere, Ambienta acquired Italian professional lighting fixture manufacturer Disano, while Altor launched an offer for the AI-powered sleep tracking application Sleep Cycle Altor launches offer for Sleep Cycle. On the fundraising front, Oslo-headquartered Verdane is aiming for a significantly larger €1.6bn fundraise with its Edda IV vehicle, more than double its predecessor’s target Verdane back in market with lower mid-market fund, while PSG is targeting a €3.4bn close for its third Europe-focused software fund PSG eyes first-half final close.

Sector Focus: Defense, AI, and Healthcare Transactions

Investment continues to pour into defense technology, evidenced by Anduril Industries raising $5bn at a $61bn valuation, doubling its previous worth, as defense-tech startups break funding records. This influx comes as analysts suggest the UK needs smarter capital policy to attract investment needed to bolster its defense sector, rather than adding regulatory burdens. In healthcare, HIG Capital-backed Avanta Salud seeks to expand its Iberian footprint by acquiring occupational health provider Vitaly Group, and Eir Partners backed life science tech firm Quartz Bio Eir Partners backs life science tech firm QuartzBio. Furthermore, the trend of PE-backed firms expanding through bolt-on acquisitions continues, with Ezeq-backed Roskam Foods acquiring food company Kitchen Partners.

Tech & AI Investments Drive Major Deals and Partnerships

The race to capitalize on artificial intelligence is drawing massive capital commitments from leading buyout firms. A consortium including TPG, Brookfield, Advent, and Bain Capital are underwriting a $4bn-plus deployment joint venture with OpenAI aimed at scaling enterprise AI adoption. Separately, Blackstone, Hellman & Friedman, and Goldman Sachs are nearing a $1.5bn AI joint venture with Anthropic, though the latter is warning investors against unauthorized secondary sales of its stock Anthropic warns investors against secondary platforms. In deep tech, Deep Mind spinout Isomorphic Labs secured a substantial $2.1bn DeepMind spinout Isomorphic Labs raises, while AI chip startup Cerebras Systems is finally proceeding with its Nasdaq debut after years of private funding Cerebras Sees Sizzling Demand For IPO Shares.

Secondaries Market Sees Caution Amid Growth in Private Credit

The secondaries market is experiencing some friction, with Harbour Vest noting that software secondaries are getting harder to close due to uncertainty over which software models will benefit from the AI wave. Industry observers point to a stutter in overall secondaries volumes, urging caution regarding evergreen marketing strategies Secondaries stutter. Concurrently, investment consultancies are noting a structural shift, with Cambridge Associates seeing fast growth in its Asian wealthy client base and a continued rise in new allocations toward private credit strategies. This movement is supported by firms like Ardian, which is broadening the distribution of its evergreen private markets strategies through Allfunds and Clearstream.

Firms Expand Verticals, Bolster Expertise, and Navigate Talent Issues

Private equity firms are actively recruiting senior talent and acquiring specialized platforms to enhance deal sourcing and operational capabilities. Pantheon has appointed one of CVC Capital Partners' senior tech investors to bolster its GP-led secondaries push. Meanwhile, William Blair is increasing its focus on sports finance by acquiring Inner Circle Sports, leveraging its expertise in sports franchise valuations, alongside other major players like Blackstone and Advent who are also engaging in the sports sector William Blair looks to capture GP and LP stakes. However, challenges remain in the talent pool; European quantum startups face a looming commercial talent crunch, and even AI scaleups are intensely focused on poaching specialized personnel from Big Tech Europe's hot AI startups set to poach.

Platform Building and Geographic Expansion in Europe

Platform building remains a key PE strategy across Europe, with firms using initial investments to rapidly consolidate adjacent businesses. Stone-Goff invested in real estate tech firm 5Q Partners, concurrent with 5Q’s acquisition of professional services firm One11 Advisors Stone-Goff invests in real estate tech firm. In Italy, AnaCap launched a new platform, Titan, which immediately agreed to acquire a majority stake in Cattaneo Dall’Olio Rho Tax & Legal Group. Furthermore, regulatory clarity is anticipated in some regions, as a draft of European merger guidelines appears broadly positive for future PE deal flow. Conversely, firms dealing with contingent workforce management must navigate the complexities of cross-border hiring, as hidden costs of hiring international freelancers can erode returns if not properly managed.

Mega-Deals and Strategic Exits in Infrastructure and Industrials

The infrastructure and industrial sectors saw several large transactions, including EQT’s high-stakes effort to take the large marine engine business Everllence private, backed by the Qatar Investment Authority and Porsche SE. EQT is also pursuing a tender offer to take Japanese listing Kakaku.com private at JPY 3,000 per share EQT launches tender offer to take Japan's Kakaku.com private. In industrials, Mutares sold Polish public transport operator Relobus to Infracapital Mutares sells Relobus to Infracapital, and logistics firm specialized in pipework, Sertion, is set for majority acquisition by Altor Altor to acquire a majority stake in Sertion. On the exit side, Argosy successfully divested from aerospace firm InTech Aerospace via an acquisition by CCE Group Argosy exits InTech Aerospace.