Private Equity 3 Days

Last updated: May 19, 2026, 8:33 AM ET

AI Infrastructure & Technology

Private equity's embrace of artificial intelligence as a value creation tool accelerated this week with two major developments. Blackstone committed $5 billion to a joint venture with Google to launch a US-based AI infrastructure business focused on tensor processing units, marking one of the largest PE investments in AI hardware to date. Separately, EQT won a mandate to manage the European Union's €5bn Scaleup Europe deep-tech fund dedicated to quantum computing, AI, and other advanced technologies, underscoring the bloc's push to compete with US and Chinese tech investment. The dual announcements reflect growing convergence between sovereign wealth objectives and private capital in the AI race, as firms seek exposure to compute-intensive workloads driving the next wave of enterprise software demand.

Healthcare & Life Sciences Deals

The healthcare sector saw notable private equity activity across multiple subspecialties. Verdane made a significant growth investment in ETERNO, a Berlin-based healthcare technology company building an AI-native operating system for outpatient care, citing zero churn, a rapidly growing enterprise pipeline, and early-stage cloud adoption in the healthcare market as key conviction factors. In a separate transaction, Triton is exiting Aleris through a strategic sale of the healthcare provider, which operates more than 100 clinics across Sweden, Norway, and Denmark. Meanwhile, EQT and IDG Capital advanced to the next round of bidding for Poly Peptide, the Swiss healthcare company, as the European healthcare deal pipeline continues to deepen with strategic buyers and financial sponsors competing for assets.

Financial Services & Payments

Embedded payments infrastructure attracted strategic interest as NMI acquired Dwolla, adding the payment technology capabilities to NMI's existing platform. The deal underscores the ongoing consolidation in payment infrastructure as providers seek to offer more comprehensive solutions to software companies embedding financial services. In banking, Monzo's profits soared amid the digital bank's European expansion, demonstrating the growing profitability of fintech challengers even as traditional institutions face pressure on net interest margins.

PE Exits & Secondaries

Exit activity remained mixed across geographies. KKR is exiting its remaining 10.57% holding in Kokusai Electric through a Nomura-coordinated block sale, marking another high-profile Japanese exit for the firm. CPP Investments unloaded a European non-performing loan portfolio to a newly formed joint venture between Arrow Global Group and Fortress Investment Group, reflecting continued appetite for distressed credit assets. In a stark valuation reset, L Catterton sold Everlane to Chinese e-commerce group Shein at approximately $100m—a sharp decline from previous valuations for the once-heralded direct-to-consumer apparel brand. The exit illustrates the challenging landscape for DTC brands that failed to achieve sustainable profitability despite significant consumer adoption.

European PE Value Creation

A new Alvarez & Marsal report reveals European private equity firms are rethinking growth strategies as AI, geopolitics, aging assets, and the rise of continuation funds weigh on value creation initiatives. The survey found firms increasingly deploying operating partners and extending hold periods to unlock value in portfolio companies. Longer hold periods have become structural as GPs prioritize operational improvements over financial engineering, with many firms hiring dedicated operating talent to drive organic growth in an environment where multiple expansion has become more difficult to achieve.

Family Offices & Energy

Family offices rotated into energy allocations during the first quarter as the Iran conflict reshaped ultra-wealthy portfolio strategies, with some of the world's largest families broadening allocations to oil, gas, and renewables according to Bloomberg analysis of 13F filings. The shift represents a notable departure from the de-emphasis of fossil fuels that characterized much of the past decade, driven by geopolitical uncertainty and attractive near-term cash yields in energy assets.

Industrial & Materials

Industrial distribution saw continued consolidation as Wynnchurch-backed EMS acquired American Metals Supply, expanding the Florida-based aluminum products distributor's footprint. Salt Creek acquired medical device firm MML Diagnostics Packaging, with Geoffrey Pestes promoted to CEO following more than a decade leading operations. The transactions reflect continued private equity appetite for specialized distribution and manufacturing assets offering defensive characteristics and recurring revenue streams.

Music Rights & IP

Private equity's interest in music rights continued with Pophouse, the Swedish firm, acquiring Tina Turner's catalog and NIL rights with plans to introduce the late superstar to new generations through IP development, live experiences, and streaming. The acquisition adds to a growing list of private equity-backed music catalog purchases as firms target the stable, long-duration cash flows generated by evergreen intellectual property.

China & Asia-Pacific

CDH Investments sees a brighter outlook for its next flagship fund launch, with managing partner Thomas Lanyi noting "chances of us going to market are improving" for the China-focused firm. The comments suggest renewed investor appetite for Chinese private equity after a prolonged downturn, though geopolitical concerns continue to weigh on allocations to the region.