Private Equity 3 Days

Last updated: May 23, 2026, 2:34 AM ET

AI and Technology Investments

Private equity activity in the AI sector continues to intensify as firms deploy capital across the technology spectrum. AI startups are stretching traditional revenue metrics when discussing progress publicly, with investors fully aware of these practices while still backing the sector. This trend continues as massive funding rounds flow into AI companies, including Futuristic AI Gadgets and Frontier Labs, alongside the usual heavy dose of AI investments. The enthusiasm extends to established platforms, with Accel-KKR investing in UpKeep's AI-native vision for asset operations, while PE-backed AI firms expand through acquisitions like Anthropic's purchase of Fractional AI. The sector's importance is underscored by EQT's urgent operationalization of AI across portfolio companies, with the firm's leadership calling it "the most important theme of our generation." Meanwhile, biotech company Imperagen raised £5 million ($6.7 to combine quantum physics and AI in enzyme engineering, while Chinese robotics companies have already raised $5.6 billion across 176 deals this year through mid-May, matching total venture funding from the previous year.

Healthcare and Med Tech M&A

Private equity firms are increasingly focusing on healthcare and medical technology, with significant activity in the pain management sector as Charterhouse, Iron Path, and Revelar Capital invest in platforms and add-on acquisitions. This trend extends to orthopedics, where Charlesbank Capital completed a merger of two Nordic manufacturers into an orthopedics-focused platform. The consolidation continues with Yellow Wood-backed Scholl's Wellness acquiring athletic performance brand Vktry, and TSCP-backed PestCo expanding its footprint through the acquisition of University Termite & Pest Control. The sector's importance is highlighted by the formation of a $21bn healthcare investment giant as London-based GHO Capital and Singapore-headquartered CBC Group combine, creating what they describe as the world's largest dedicated healthcare investment manager. The merged entity will be led by co-CEOs Mike Mortimer and Fu Wei, with GHO and CBC signing the definitive tie-up after initial discussions.

Secondaries Market Evolution

The private equity secondaries market continues to evolve as managers adapt to changing investor expectations and market conditions. General partners are responding to longer hold periods and lower distribution rates by offering alpha-delivering strategies through increasingly differentiated approaches. This has led to fee rate adjustments by StepStone in its flagship secondaries funds, with the firm lowering fees during investment periods before increasing them afterward. The market dynamics are further evident as CPP Investments completed the sale of $2.9 billion in private equity portfolio interests to Blackstone Strategic Partners and Ardian, while Pantheon launched a $1bn CFO vehicle that created access for insurance investors that had lost the ability to back PE. Extended holding periods are reshaping private equity structures, with implications for how firms approach their fund lifecycles and investor commitments. The infrastructure secondaries segment, in particular, is experiencing tremendous growth as institutional investors seek exposure to this alternative asset class through secondary transactions.

Industrial and Manufacturing Consolidation

The industrial and manufacturing sectors are experiencing significant consolidation activity as private equity firms optimize their portfolios. Frontenac is preparing to sell CV asset MCE, with Churchill Asset Management and 50 South Capital co-leading the transaction to extend Frontenac's hold of the industrials asset. Meanwhile, Capitol Meridian has appointed former U.S. Army Secretary Ryan McCarthy as an operating partner to advise on defense market trends and investment opportunities. The industrial consolidation extends to platform formation, with Trinity Hunt forming Elevation Landscape Group through its first investment in Landscape Endeavors, a Colorado Springs-based commercial landscaping company. Portfolio companies are also changing hands, as Kingswood Capital sold marine services firm Lind Marine to Tallvine Partners, while Wynnchurch divested metal fabricator Ironform that supplies precision metal stampings to agriculture, construction, and industrial markets. The trend of industrial companies testing the market for sales continues with Onex, Frontenac, and the Sterling Group expected to move forward with portfolio company disposals, though OEP has reportedly put one sale process on hold.

Consumer and Retail