Private Equity 3 Days

Last updated: May 25, 2026, 8:33 AM ET

European Policy & Sovereignty

Private equity faces a reckoning over its relationship with governments. Gareth Davies, UK shadow minister for business, argues in PE International that a more deliberate collaboration between state and private capital is required if the industry is to play a meaningful role in building public infrastructure. The push for closer state-PE ties comes as European sovereignty debates intensify, with Sifted warning that sovereignty rhetoric must not become a cover for corporate welfare. Together, the two pieces frame a growing tension: policymakers want PE to build strategic capacity, but founders and investors worry that heavy-handed state involvement will distort market discipline. The stakes are high for firms chasing European mandates and subsidy pipelines.

European Startups & AI Revenue Trends

European startup growth is accelerating, but metrics are getting messier. Berlin-based Peec, which helps brands track their presence in AI search results, reportedly more than doubled annualized revenue to $10M in just months, offering concrete evidence that European AI infrastructure plays are gaining traction. At the same time, VCs and founders are inflating ARR figures to hype AI startups, with investors fully aware of the stretch. The gap between reported and actual revenue creates a credibility problem heading into what promises to be a crowded fundraising season. Meanwhile, Sifted profiled the most active legaltech investors in Europe, signaling that sector-specific funds are gaining conviction even as generalist capital chases AI narratives. Across the Atlantic, smart ring maker Oura filed for a New York IPO, joining a wave of European consumer-health exits that could set valuation benchmarks for wearable and wellness plays backed by European capital.

Healthcare & Industrial Secondaries

Private equity is deepening its bets in healthcare and industrial assets. This week's biggest funding rounds included massive deals for medical devices, frontier AI labs, and aerospace and defense, reflecting a broader rotation into capital-intensive sectors. In orthopedics, a merger between two Nordic medtech manufacturers backed by Charlesbank Capital created an orthopedics-focused platform, while Charterhouse, Iron Path, and Revelar Capital are actively hunting pain management assets. On the secondary side, Frontenac is preparing to sell the CV asset MCE, co-led by Churchill Asset Management and 50 South Capital, extending Frontenac's hold on industrials while freeing capital for new deployment. The healthcare activity suggests PE firms see durable demand in aging populations and regulatory tailwinds, while the secondaries transaction points to a maturing market for institutional-grade portfolio reshuffles.