Private Equity 3 Days

Last updated: May 15, 2026, 11:33 PM ET

Defense Tech Boom Accelerates

Anduril shattered funding records with a $5 billion infusion at a $61 billion valuation, doubling its previous mark and underscoring insatiable investor demand for defense technology. The round, led by Founders Fund, catapults Anduril past SpaceX as the most valuable U.S. private company, fueled by AI-integrated systems and border security contracts. Parallel momentum is evident in European drone maker Quantum Systems, which is in talks to secure roughly €600 million from Blackstone and Airbus at a €7 billion valuation, further validating the sector’s explosive growth. Meanwhile, Dutch dronemaker Destinus is raising €200 million to advance hypersonic cargo aircraft, reflecting a broader push to merge aerospace innovation with private capital.

Middle Market Deal Activity Heats Up

Mid-market private equity firms executed a series of strategic acquisitions and take-privates. Charlesbank and Nordic completed their merger of Tecomet and Orchid Orthopedic Solutions, creating a combined orthopedics device manufacturer with enhanced scale in surgical instruments and implants. Kinderhook finalized its take-private acquisition of Enhabit Home Health & Hospice, a national in-home care provider, signaling continued interest in healthcare services. HIG Capital acquired International Aerospace Coatings, a key supplier to airlines and OEMs, while Ardian arranged unitranche financing for IK Partners’ LBO of French wealth manager Rhétorès Group, highlighting the availability of debt for sponsor-backed deals. In the industrials sector, American Securities sold processing equipment provider CPM to Rosebank for $2.1 billion, a healthy return on its 2018 investment.

Infrastructure & Energy Capital Floods Gulf, Logistics

Blackstone’s GIP, Temasek, and Abu Dhabi sovereign entities L’IMAD and ADNOC launched a $30 billion infrastructure platform targeting investments across the Gulf and Central Asia, marking one of the largest dedicated regional platforms. The coalition will focus on energy, transportation, and digital infrastructure, leveraging Blackstone’s global relationships and ADNOC’s energy expertise. Separately, CPP Investments committed €400 million alongside Blackstone to acquire a minority stake in French last-mile logistics platform Proudreed, a bet on e-commerce-driven warehouse demand. In energy, Houlihan Lokey’s JP Hanson flagged $30 billion of upstream oil and gas assets coming to market, citing Iran war-related disruptions and a wave of portfolio company sales by producers.

AI Integration Drives TICC and Tech M&A

The testing, inspection, and certification (TICC) sector is attracting private equity due to its predictable revenue streams and AI adoption. Houlihan Lokey noted that AI integration is helping TICC firms win PE backing, with deals involving Ardian, Blackstone, Bridgepoint, and EQT. Eir Partners invested in Quartz Bio, a life sciences data analytics company, to capitalize on AI-driven biomarker intelligence for drug development. Meanwhile, Ambienta acquired Italy’s Disano, a professional lighting fixtures manufacturer, reflecting industrial tech convergence. In tech, Multiverse, the U.K. apprenticeship platform founded by Euan Blair, boosted its valuation with a $70 million fundraise, while Cerebras Systems debuted on Nasdaq with shares soaring after years of private fundraising; Benchmark nearly doubled its money on the AI chipmaker’s IPO.

PE Fundraises and Secondaries Activity Intensify

Welsh Carson is targeting $5 billion for its 15th flagship fund, focusing on mid-market buyouts in North America, according to fundraising documents. Blackstone is laying groundwork for a third long-hold buyout fund, a strategy that extends the traditional holding period to five-plus years for select companies. In secondaries, CV pricing climbed amid new buyside capital formation, with lower-range transactions declining as buyers emphasized asset selection. Evercore bolstered its infrastructure secondaries team by hiring senior talent from Campbell Lutyens, while Cambridge Associates is eyeing credit secondaries and specialty lending to meet rising Asian investor demand.

Healthcare and Consumer Focus Persist

L Catterton took a strategic stake in China’s Saint Bella Group to build a global family-care platform, leveraging its LVMH-affiliated consumer expertise. In healthcare, KKR-backed Global Medical Response listed at a $3.3 billion valuation after cutting its IPO price, raising $479 million to reduce debt. Meanwhile, a group led by Blackstone and KKR is taking control of Affordable Care through a restructuring that will write off roughly 70% of its debt, a move highlighting distressed PE opportunities in the sector.

European PE Conferences and Market Sentiment

Italy’s largest private equity conference returns to Milan next May, followed by France’s event in Paris (March) and the Nordics’ gathering in Stockholm (November), underscoring the calendar’s packed dealmaking forums. Despite a challenging macro environment, deal activity remains robust in sectors with pricing power and AI integration. However, Indian private equity activity slowed in recent months, with LPs debating geographic diversification amid global uncertainty.

Sector-Specific Trends: Sports, Legal Tech, and Defense

William Blair is leveraging its acquisition of Inner Circle Sports to capture GP and LP stakes in professional sports teams, tapping into a hot M&A niche. In legal tech, AI contract review startup Legora is pursuing acquisitions to expand its product suite, reflecting consolidation in the space. Defense tech continues to dominate venture funding, with Anduril’s record round setting the tone for a decade of heightened government and investor spending on security applications.