Private Equity 3 Days

Last updated: May 19, 2026, 8:34 PM ET

Mega Deals and Strategic JVs

Private equity is wiring up its biggest infrastructure bets as the AI buildout accelerates. Blackstone committed $5 billion to a joint venture with Google to launch a U.S.-based AI infrastructure business, with an initial equity commitment to bring 500 MW of capacity online by 2027 Blackstone and Google form new tech company. The deal, which Blackstone is backing with $5 billion, signals how extended hold periods and value creation are reshaping PE strategy, prompting firms to embed operational partners more deeply into portfolio companies. Meanwhile, EQT won a €5 billion mandate to manage the EU's Scaleup Europe deep-tech fund targeting quantum computing, artificial intelligence, and other frontier technologies EQT wins EU superfund, and the firm says it already has over 100 companies in its pipeline EQT pipeline deepens. In private credit, Barings closed more than $19 billion in committed capital for its Global Direct Lending strategy, one of the largest raises of the year as private credit scale continues to concentrate.

Portfolio Company M&A and Sector Roll-Ups

Several PE-backed platforms are pursuing consolidation across industrials, healthcare, and consumer services. WHP Global, backed by Oaktree and Ares, agreed to acquire the Marc Jacobs brand from LVMH Moët Hennessy Louis Vuitton, marking another high-profile fashion brand moving into private hands. In logistics, Garnett Station-backed True North acquired Miles Truck Services, adding fleet maintenance and repair capacity to its platform. Agellus-backed HighGrove snapped up Lawn Enforcement Agency, expanding its commercial landscaping footprint, while Wynnchurch-backed EMS acquired American Metals Supply, bolstering its aluminum distribution network. Healthcare roll-ups continued with QHP-backed Lexitas Pharma Services picking up Erie Retina Research, an ophthalmology clinical research organization, and Salt Creek acquiring medical device firm MML Diagnostics Packaging, where Geoffrey Pestes was promoted to CEO. Boyne Capital partnered with Sisu Equity and Consumer Growth Partners to back Local Boys Outfitters, a consumer apparel brand, and Leonard Green completed a take-private buyout of Mister Car Wash at $7 per share, valuing the enterprise at $3.1 billion. Kelso-backed Novvia acquired APC Packaging, a rigid container and life sciences distributor, extending its reach into packaging services.

PE Exits, Secondaries, and Music Rights

Investors are rotating out of entertainment and strategic positions amid shifting market dynamics. Blue Owl's Doug Ostrover sold his remaining stake in the Washington Commanders back to the Josh Harris-led ownership group amid private credit pressure, while KKR exited its 10.57% holding in Kokusai Electric through a Nomura-coordinated block sale. L Catterton sold Everlane to Shein at roughly $100 million, a sharp markdown for a once-celebrated direct-to-consumer brand. Triton is exiting healthcare provider Aleris via a strategic sale, and Sverica agreed to sell its agentic AI firm WinWire to NTT Data, having initially invested in 2021. Music rights continue to attract PE interest, with Pophouse acquiring Tina Turner's catalog and NIL rights to develop new IP and live experiences, part of a broader wave of catalog acquisitions PE scoops music rights. On the secondaries side, CPP Investments unloaded a European non-performing loan portfolio to a joint venture between Arrow Global Group and Fortress Investment Group, and Hull Street acquired FirstLight USA from PSP Investments, gaining a portfolio of nearly 1,400 MW of clean generation in the Northeast.

Private Credit and Refinancing Activity

Private credit markets are deepening as bank lending tightens. H.I.G. Bayside refinanced UK care provider Lifeways with a £90 million unitranche facility, restructuring debt on the healthcare platform. Barings' $19 billion direct lending raise underscores the structural shift toward private credit, with investors increasingly comfortable deploying capital outside traditional bank channels. Secondaries talent compensation, however, remains softer than the broader alternatives market, with median pay for secondaries distribution specialists hitting $739,000 in 2025 versus $800,000 across alts. CPP Investments also unloaded its European NPL portfolio, indicating continued appetite for distressed assets among well-capitalized buyers.

AI, Quantum, and the European Tech Ecosystem

European deep-tech investment is gaining institutional muscle. EQT's selection to manage the EU's €5 billion Scaleup Europe fund will channel capital into quantum computing and AI startups, even as quantum computing startup funding slows in 2026 while public markets hold up. Mistral acquired Austrian AI startup Emmi, its second M&A deal in months, while Cohere snapped up a second German AI startup weeks after its Aleph Alpha deal. Legal tech is attracting venture capital too, with Lexroom raising $50 million in a Series B and Stilta raising $10.5 million from a16z and Y Combinator to automate patent research. On the venture side, Sequoia backed AI agents scaleup Dust with a $40 million Series B, and Index Ventures led a $20 million round in AI inspection startup Scope. DeepMind alumni are building startups across Europe, and Verdane invested in Berlin's ETERNO, an AI-native outpatient care platform, reflecting broader conviction that PE is leveraging AI as a value creation tool.

Energy, China, and the Broader PE Climate

Large institutional investors are pivoting toward energy. Kimmeridge, CPP Investments, and Mubadala anchored a $13 billion Commonwealth LNG project after Caturus reached a positive final investment decision on its Cameron Parish facility, supported by $9.75 billion in project financing. Family offices broadened allocations to oil, gas, and renewables in Q1 as the Iran conflict reshaped ultra-wealthy portfolio strategy. In China, continuation vehicle pricing is rising as the country re-enters the investment conversation, and CDH sees a brighter outlook for its next flagship fund launch, with managing partner Thomas Lanyi saying chances of going to market are improving. Meanwhile, European PE firms are rethinking growth amid AI, geopolitics, and ageing assets, while PE-backed NMI acquired payment tech firm Dwolla and Weatherford Capital tapped Todd Marcy as