Private Equity 3 Days

Last updated: May 14, 2026, 8:30 PM ET

Deal Activity and Fund Formation

Deal volume globally experienced a contraction in Q1 2026, though the average transaction size grew substantially, reflecting a trend where fewer but larger deals closed, according to S&P Global Market Intelligence data analyzed by PE Hub. This environment is leading firms like Bridge Growth Partners to emphasize specialization for their continuing capital vehicles, as noted by Alok Singh. Meanwhile, capital formation remains active, with Welsh Carson targeting $5bn for its 15th flagship fund focused on North American mid-market buyouts, and PSG seeking €3.4bn for its third Europe fund, expecting a first-half final close. On the operational front, dealmakers are being reminded that maintaining strong Limited Partner relationships requires attending annual general meetings, as cold-shouldering LPs can damage crucial ties.

Major Exits and Secondary Market Dynamics

The secondary market is showing signs of strain, with uncertainty denting otherwise burgeoning volumes, although specific sectors face unique headwinds; for instance, software secondaries are proving harder to close due to the bifurcation between AI-enhanced winners and obsolete businesses. In contrast, major exits are proceeding, such as American Securities selling CPM for $2.1bn to Rosebank, and Gen Nx360 divesting Precision Aviation Group to VSE for over $2bn. Further demonstrating the scale needed for advisory consolidation, Lazard’s acquisition of Campbell Lutyens signals that future success in the sector will come with a substantial price tag, a notion echoed by commentary on the closing of the deal.

Infrastructure & Real Estate Activity

Large-scale capital deployment is concentrating in digital and physical infrastructure, highlighted by Blackstone raising a record $1.75bn in a blind-pool REIT IPO specifically to chase data center assets. In a massive infrastructure push, BlackRock’s GIP, Temasek, and ADNOC launched a new platform targeting $30bn of investments across the Gulf and Central Asia. In real estate, KKR successfully exited a Danish residential portfolio comprising 213 units, sold to Pears Global Real Estate, marking an exit from an asset acquired in 2021. Separately, EQT is bidding for Volkswagen’s marine engine business Everllence in a deal reportedly backed by the Qatar Investment Authority and Porsche SE.

Sector-Specific Investments and Acquisitions

Private equity firms continued deploying capital across specialized verticals, with General Atlantic investing in PowerGEM and Balance Point injecting capital into The Edge alongside Serent Capital’s acquisition of the jewelry retail software provider. In the consumer space, L Catterton took a stake in Saint Bella Group to support its global family-care platform expansion originating from China, while Ambienta acquired Italian lighting fixture manufacturer Disano. On the industrials front, Mutares sold Polish public transport operator Relobus to Infracapital, and PAI Partners and EQT agreed to sell World Freight Company to Brookfield Asset Management for an enterprise value of approximately $1.2bn.

Tech, AI, and Venture Capital Trends

The intersection of AI and hardware continues to draw massive valuations, evidenced by the pending Nasdaq debut of AI chip startup Cerebras Systems, which previously secured heavy private funding, prompting Benchmark’s Eric Vishria to recall nearly skipping the initial hardware pitch ten years prior. Simultaneously, defense technology is attracting significant venture capital, as Anduril Industries raised another $5bn at a $61bn valuation, doubling its previous mark. European AI funding is also growing as a proportion of overall venture capital, supporting frontier model companies and numerous AI-centric sectors, though talent acquisition remains a concern, with European AI scaleups chasing specific talent profiles.

Fundraising and Talent Moves

Firms are actively recruiting senior talent to build out specialized capabilities, particularly in secondaries and credit. Pantheon hired Leif Lindbäck from CVC to bolster its GP-led secondaries team, while Evercore added senior infrastructure secondaries talent from Campbell Lutyens, signaling a buildout in that niche. Furthermore, Ardian broadened its distribution reach for its evergreen private markets strategies by expanding partnerships with Allfunds, Clearstream, and Euroclear, targeting wider wealth channel access. Separately, Blackstone has initiated groundwork for its third long-hold buyout fund, suggesting a commitment to long-dated private equity strategies.

Public Market Moves and Strategic Exits

PE-backed entities are testing public markets with mixed results; KKR-backed Global Medical Response listed in New York after scaling back its IPO size and pricing below the initial range to raise $479m. Conversely, Advent filed for an INNIO Group IPO, targeting data center power demand as a potential exit vector. In corporate activity, EQT launched a tender offer to take Japanese firm Kakaku.com private at JPY 3,000 per share. M&A activity remains high in niche areas, such as Aquiline-backed Relation acquiring Crop Rx Insurance Services and RFE-backed ZRG acquiring executive search firm Sterling Martin Associates.

European Conference Circuit Previews

The European private equity calendar is firming up, indicating continued focus across major markets. Key annual events include the return of BENELUX's Largest Private Equity Conference to Amsterdam in September, the Nordics' Largest Private Equity Conference convening in Stockholm this November, and the Iberia’s Largest Private Equity Conference scheduled for Madrid in October. to next year, major gatherings are set for Paris, hosting France's Largest Private Equity Conference in March, and Frankfurt for Germany’s Largest Private Equity Conference that same month, while Italy’s Largest Private Equity Conference is slated for Milan next May.

AI, Quantum, and Regulatory Focus

Investment continues to flow into foundational technology, with Blackstone and Airbus anchoring a €600m round for German drone maker Quantum Systems, valuing the entity near €7bn. In the life sciences AI sphere, Deep Mind spinout Isomorphic Labs successfully raised $2.1bn. Given the energy demands of advanced computing, some experts suggest that the AI energy crisis will be exacerbated when quantum computing arrives. On the regulatory side, the draft of European merger guidelines is viewed as broadly positive for PE deals by firms like Proskauer, although the UK faces strategic choices regarding its defense sector, needing smarter capital policy to avoid repelling necessary investment.