Private Equity 3 Days

Last updated: July 5, 2026, 2:30 PM ET

AI Fuels Unicorn Boom and Investor Returns

The artificial intelligence boom continues to mint new billion-dollar startups at an unprecedented pace, with nearly 90 new unicorns created so far this year almost 90 new unicorns. This surge in AI-driven valuations is directly benefiting established private equity players. Blackstone's private wealth fund posted its strongest-ever monthly return, largely propelled by its significant stake in AI developer Anthropic. The sustained investor frenzy around AI is also evident in the ambitious valuations sought by emerging AI labs, with Eleven Labs reportedly targeting a $22 billion valuation in a fresh share sale ElevenLabs targets $22bn valuation. This trend is reshaping the venture capital landscape, particularly in Europe, where a new model for creating billion-dollar startups is emerging at a rate of one unicorn per week one unicorn week.

European Dealmaking and Expansion

European venture capital firms are navigating a complex environment, with some pushing for limitations on non-European investments, leading to internal splits ETCI-backed VC firms split. Despite these internal debates, the region is witnessing substantial activity in digital infrastructure and software. Sandbrook Capital announced a €200 million investment in Krios, a platform focused on developing grid-secured land for large-scale data centers, signaling strong momentum in European digital infrastructure. In the software sector, Main Capital Volpi Capital have been active in deal-making. Meanwhile, the long-standing EU initiative to translate startup placements into patents is celebrating its 30-year anniversary, underscoring a sustained effort to foster innovation and intellectual property creation 30-year EU initiative. The King's Cross area in London is also emerging as a hub for AI development, with multiple AI labs establishing a significant presence Mapped: AI labs.

Private Equity Activity and Fund Management

Private equity firms are actively managing their portfolios and seeking new investment opportunities across various sectors. Eurazeo has divested its stake in FST Hotels, a Spanish hotel portfolio, selling it to Extendam, a European specialist in hospitality-focused private equity. In the secondaries market, Evercore has bolstered its Asian team with talent from Harbour Vest, addressing the growing demand for secondary transactions in the region. For institutional investors, the search for expert guidance continues, with the Town of Wellesley issuing a request for proposals for investment consultant services for its retirement board and Other Post-Employment Benefits trust. Even lesser-known entities like Bending Spoons, owner of AOL and Vimeo, are now public, though they remain largely unrecognized despite serving over a billion people globally.

Venture Capital Investments and Geographic Focus

Venture capital firms are deploying capital into promising startups, often leveraging regional connections. Jack Selby's Copper Sky Capital, Thiel Capital's venture arm, is reportedly raising a $300 million second fund, having secured stakes in startups like Etched through its Arizona network. This focus on specific geographic or thematic strengths is a common thread in the current venture capital climate, as firms seek to carve out distinct investment strategies in a competitive market.