Private Equity 3 Days

Last updated: May 22, 2026, 2:30 PM ET

Major Exits and M&A Activity

Private equity posted several heavyweight transactions over the past three days, signaling continued appetite for large-cap disposals. KKR booked a $2.55bn exit on the sale of CIRCOR Aerospace to Parker Hannifin, a business it carved out of its broader CIRCOR International platform after acquiring the parent for $1.8 billion in 2023. The deal marks one of the year's largest PE exits and leaves KKR with ownership of Circor's naval and industrial divisions. Meanwhile, Canada Pension Plan Investment Board offloaded a $2.9bn private equity portfolio to Blackstone Strategic Partners and Ardian, the largest single fund interest sale of the year so far, with the Canadian pension giant divesting exposure to 33 limited partnership funds through the CPPIB portfolio sale. Across the Atlantic, London-based GHO Capital and Singapore-headquartered CBC Group agreed to merge, creating what they describe as the world's largest dedicated healthcare investment manager with over $21 billion in assets under management. Co-founders Mike Mortimer and Fu Wei will serve as co-CEOs of the combined entity, consolidating a deep bench of healthcare specialists under one roof. In a separate healthcare move, Charterhouse Capital, Iron Path and Revelar Capital are investing in pain management platforms and add-ons, part of a broader wave of PE interest in the sector that also saw a completed merger of two medtech manufacturers into an orthopedics-focused platform backed by Charlesbank Capital.

Healthcare and Consumer Brand Deals

The healthcare consolidation wave extended well beyond the GHO-CBC merger. Authentic Brands Group, a PE-backed global brand platform, acquired the denim brand Lee, adding to its portfolio of consumer labels. On the services side, PestCo snapped up University Termite & Pest Control, a St. Louis-based provider of residential and commercial pest control services, while Southern Home Services acquired Blazer Heating, Air & Plumbing in a deal backed by Gryphon Capital. In the wellness space, Yellow Wood-backed Scholl's Wellness Company acquired athletic performance brand Vktry, and Nautic-backed Integrated Home Care Services scooped up Dina Care, an in-home benefit manager based in Miramar, Florida. The pace of deal-making in healthcare and home services reflects a broader strategy among buyout firms to build vertical platforms in fragmented, recurring-revenue businesses.

Secondaries, Fund Launches, and Strategy Shifts

The secondaries market continued its expansion into new segments and investor classes. Step Stone lowered fees in its flagship secondaries funds during investment periods, a move aimed at attracting capital in a pricing-sensitive environment, while Pantheon's debut $1 billion continuation vehicle created access for insurance investors that had lost the ability to back traditional PE funds. The Secondaries Investor Q1 2026 deal log showed 27 continuation vehicles closing, with nine involving asset classes beyond private equity, underscoring the segment's broadening mandate. On the fund side, Partners Group launched a yield-focused Total Return Strategy targeting mature heavy industries and traditional sectors, with Todd Miller noting a perceived gap in the corporate private equity market for cash-yielding strategies. The strategy plans to hold businesses for up to 12 years and emphasize immediate cash returns alongside long-term appreciation. Separately, Switzerland's Publica, the Swiss Federal Pension Fund, is preparing to commit up to $1.1bn to direct lending, signaling growing institutional appetite for private credit strategies.

European Tech, AI, and New Fund Capital

European venture and growth capital activity picked up notably. EQT sought to back UK startups using the EU's €5bn Scaleup Europe Fund, while Balderton-backed payments startup Primer raised $100m in a Series C. In the biotech space, Imperagen raised £5 million ($6.7 million) for its enzyme engineering platform combining quantum physics and AI. Meanwhile, Anthropic and a PE-backed AI-native enterprise services firm acquired Fractional AI, a transaction involving Goldman Sachs, General Atlantic, Leonard Green & Partners, Apollo Global Management, GIC and other investors. The deal underscores the accelerating consolidation in enterprise AI services. On the regulatory front, the EU is rapidly rewriting the AI Act, and EQT's Per Franzén declared a 'very, very high sense of urgency' to operationalize AI across portfolio companies, suggesting that fund managers see AI implementation as both a value-creation tool and a competitive necessity. In aerospace, One Bow River backed PteroDynamics, enabling the company to accelerate development of its transwing VTOL unmanned aircraft systems, while Convective Capital raised an $85m fund to build disaster resilience after launching initially to invest in fire technology. Earlybird is also raising a €500m defence fund with French investor AVP, reflecting growing institutional interest in defense-related infrastructure.