Private Equity 3 Days

Last updated: May 24, 2026, 11:35 PM ET

AI Startups and Revenue Metrics

European AI startups continue to draw capital on ambitious growth claims, even as skeptics question how those numbers are being reported. Berlin-based Peec, which helps brands track their presence in AI search results, more than doubled annualized revenue to $10M in recent months, signaling strong commercial appetite for tools that measure visibility in generative search. That momentum comes amid broader concern that some AI founders and their VC backers are inflating annual recurring revenue figures to project faster scaling than underlying bookings support. Investors aware of the gap between reported ARR and actual contract value still participate, given the long runway for AI infrastructure companies to justify valuations. The tension mirrors a pattern seen across Europe's tech ecosystem, where Sifted mapped over 60 legaltech startups reshaping how legal work gets done, while top investors in Southern Europe placed big bets on the region's next wave of founders. Meanwhile, the EU is rapidly rewriting its AI Act, which could tighten compliance costs for startups operating across borders and further complicate revenue recognition if regulatory scrutiny intensifies.

Funding Activity and IPO Pipeline

This week's largest funding rounds reflected the breadth of investor appetite beyond pure AI, with significant capital flowing into medical devices, aerospace and defense, fintech, and retail technology. The pipeline of exits also advanced: smart ring maker Oura filed for a New York IPO, a high-profile debut for the health wearables company that has drawn comparisons to early consumer tech IPOs. On the buy side, Avista and Damier agreed to acquire vitamins company Sanotact, a deal led by the family office of serial entrepreneur Yvan Vindevogel that signals continued interest in consumer health assets across Europe.

Healthcare and Pain Management

Private equity firms are concentrating capital in the pain management and orthopedics space. Charterhouse Capital, Iron Path, and Revelar Capital are pursuing pain management platforms and add-ons, while a separate wave of activity saw Charlesbank Capital complete a merger between two medtech manufacturers to create an orthopedics-focused platform. The sector's appeal stems from aging demographics and recurring revenue models in post-surgical care, a combination that attracted multiple PE groups simultaneously.

Strategic Shifts in Mature Industries

Large allocators are recalibrating their strategies toward less glamorous sectors. Partners Group's Todd Miller said his firm's total return strategy would focus on mature heavy industries and traditional sectors, targeting yield in areas where corporate private equity had left white space. In a separate move, CVC and GBL launched a take-private bid for Recordati, a pharmaceutical company, illustrating how firms are deploying capital in established industries with predictable cash flows. Meanwhile, Frontenac prepared to sell its Churchill Asset Management portfolio company MCE, with 50 South Capital co-leading the continuation fund process to extend the firm's hold on the industrials asset.