Private Equity 3 Days

Last updated: June 9, 2026, 5:32 PM ET

Fundraising and LP demand

Private equity fundraising remained uneven as LPs kept money moving but concentrated it in products that promise liquidity, co-investment exposure or proven performance. Pictet closed its sixth co-investment fund at $1.53bn, its largest raise in the series and above target, signaling demand for direct access to buyout deals as investors seek to reduce fee drag. That preference for liquidity was also visible in Future Standard’s latest flagship, which secured about $3bn for LP-led transactions in the North American mid-market, where sponsors are increasingly using continuation vehicles to hold assets longer while giving limited partners cash or roll options.

The fundraising backdrop is still shaped by aging portfolios and slower exits. Zombie funds surpassed $1trn five years earlier than TREO expected, with assets held more than seven years now equal to one-fifth of global PE capital, a sign that sponsors are struggling to sell companies at desired valuations. Blackstone weighed a fund-stake sale of more than $2bn as buyout exits stalled, one of the largest deals of its kind and a reminder that even the largest managers are using asset sales to manage duration pressure.

Deal market and investor selectivity

Deal activity stayed selective, with sponsors leaning into sectors that can support defensive cash flows, add-on strategies or cross-border consolidation. Carlyle agreed to acquire Chung Ho Group for $700m, buying into South Korea’s home and healthcare appliance rental platform as firms look for succession-driven transactions in Asia. In the US, Arlington is selling Riverpoint Medical for $1.2bn, with the medical device transaction expected to close in the third quarter of 2026, showing that healthcare assets with scale can still clear nine-figure exits.

Cross-border and consolidation strategies are also attracting capital. CD&R and Platinum Equity pressed on with a bid for a 50% stake in Nestlé’s water business as PAI stepped back, keeping one of the sector’s most watched consumer assets in play. Brookfield and GIP advanced among bidders for Kuwait’s pipeline network in a transaction that could raise around $7.5bn, underscoring how infrastructure teams are competing for long-duration concessions even as traditional buyout exits remain difficult.

Private credit, co-investment and fund structures

Private credit is becoming more central to PE dealmaking, but lenders are also forcing sponsors to confront leverage limits. Apollo and Blackstone closed a $35bn financing package to fund Anthropic’s AI chip infrastructure, a rare mega-deal that ties private credit directly to the AI infrastructure buildout. At the same time, Partners Group prepared a $231m injection into Emeria as the portfolio company’s debt load outgrew earnings, showing that aggressive leverage can require sponsor balance sheets when refinancing markets tighten.

Fee and governance debates are moving up the agenda as LPs demand clearer economics. Market forces are reshaping fees while Hunter Point raised $4.3bn for GP financing and EQT appointed a new CFO, reflecting pressure on sponsors to professionalize finance, reporting and capital allocation. Morgan Stanley said TPA adoption is intensifying GP bifurcation, with firms that can offer institutional distribution, reporting and operational support better placed to win LP capital.

Secondaries and continuation vehicles

Secondaries markets are expanding beyond simple portfolio sales into more complex liquidity solutions. Credit secondaries are on track to exceed $80bn in annual volume by 2030, with Carlyle Alp Invest estimating $20bn of dry powder at the start of 2026, enough for six to nine months of deployment at current pace. That growth comes as top-performing continuation vehicles continue to outperform buyout funds, according to Evercore and HEC Paris, though the same market is also seeing more scrutiny over valuation, alignment and asset quality.

Sponsors are testing alternatives to classic continuation vehicles. Neuberger’s PE head flagged mid-life solutions as a way to generate liquidity where CVs are complicated by co-investor structures, while Blackstone’s potential $2bn fund-stake sale points to another route for LPs seeking exposure without waiting for traditional exits. The message from the secondary market is clear: liquidity is available, but it increasingly comes with heavier diligence and more complex structuring.

AI, software and vertical platforms

AI infrastructure is pulling private capital into both venture-style growth assets and mature software platforms. Thoma Bravo sees AI and cross-sell opportunities after agreeing in April to combine HCSS with Nemetschek’s build and construct segment, aiming to build a vertical AI and Saa S platform for the architecture, engineering and construction market. That follows a broader shift in which vertical AI startups are bringing direct sales back through private equity networks and industry conferences as contract values rise and distribution becomes more relationship-driven.

Software sponsors are also hunting for regulatory and compliance niches. Thoma Bravo agreed to take Kneat private for $466m, buying a validation software provider serving regulated life sciences customers. Inflexion-backed Axiom GRC is acquiring MHM, adding SOC and ISO compliance assurance services for SME and mid-market clients in North America, a move that fits the broader sponsor appetite for businesses with recurring revenue and expanding compliance budgets.

Healthcare, life sciences and consumer

Healthcare remains one of the more resilient PE markets, with sponsors backing specialized providers and regulated technology. Archimed acquired IRAB, a Barcelona-based PET radiopharmaceuticals company founded in 2016 that serves clinical diagnosis, trials and biomedical research, adding to a wave of investment in diagnostics and life sciences infrastructure. In Finland, CapMan Growth exited Silmäasema for €574m, selling the country’s largest private eye care and optical retail operator, a deal that shows healthcare services can still attract strong bids when scale and market position are clear.

Consumer deals are more selective but still active where brands offer consolidation potential. CapVest-backed Second Nature Brands agreed to acquire Tillamook from Insignia Capital Group and family shareholders, expanding its meat snacks platform. TSG Consumer-backed Cadogan Tate acquired FLD, a luxury moving and design logistics firm serving ultra-high-net-worth residential and interior design clients, showing sponsors are willing to pay for niche consumer-adjacent services with high barriers to entry.

Industrial, aerospace and technology add-ons

Industrial sponsors are using add-ons and platform investments to build scale in fragmented markets. Arcline acquired Continental Aerospace Technologies for $535m, adding a general aviation engine manufacturer with aftermarket products and services. Bain Capital invested in FDH Aero, an aerospace supply chain firm where Audax Private Equity is expected to remain a significant investor, reinforcing the theme of co-investment and sector specialization in defense and aviation supply chains.

Electrical equipment and fire protection platforms are also drawing PE capital. Platte River Equity acquired Tallman Equipment Company, marking its 100th acquisition since 2006 and showing how lower-middle-market sponsors are still compounding platforms through frequent add-ons. PE-backed Pye-Barker snapped up Fire Protection Specialists, adding integrated fire protection services in the Pacific Northwest to its fire alarm and security offerings, a classic roll-up strategy in defensive building-services markets.

People, regions and firm strategy

Private equity firms are adjusting leadership teams as they chase Asia, sports, investor relations and sector specialization. EQT appointed Gustav Segerberg as CFO as Henriksson stepped down, handing finance duties at one of Europe’s largest listed private markets firms to a long-serving insider. EQT also said there is more to do in Asia, with a new early-stage SMA serving as proof of concept for a dedicated regional strategy under APAC co-heads Hari Gopalakrishnan and Nicholas Macksey.

Smaller firms are making targeted hires to sharpen sourcing. Ridgepost appointed Brian McKenna as VP of investor relations, effective June 15, 2026, while Banner Capital tapped McKay Potter as principal to lead sourcing, execution and value creation in Western US service sectors. CAZ Investments recruited Greg Grissom as executive director of sports investing, a newly created role focused on evaluating sports opportunities and deepening relationships across professional teams and leagues.