Private Equity 3 Days

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

Private Equity Sees AI-Fueled Unicorn Boom Amid Wealth Fund Gains

The private equity sector is experiencing a notable surge in new billion-dollar companies, with nearly 90 startups achieving "unicorn" status so far this year, largely propelled by investor enthusiasm for artificial intelligence technologies nearly 90 new unicorns. This AI-driven frenzy is contributing to significant returns for some of the industry's largest players. For instance, Blackstone's private wealth fund posted its strongest-ever monthly return, with its stake in AI developer Anthropic being a primary driver. The trend toward high valuations is also evident in Europe, where a new model is emerging for creating billion-dollar startups, with AI labs increasingly populating tech hubs like London's King's Cross AI labs taking over.

European Dealmaking and Expansion

European private equity firms are actively engaged in dealmaking and portfolio management. Eurazeo has sold its stake in the Spanish hotel portfolio FST Hotels to Extendam, a European specialist in hospitality-focused private equity, marking a strategic exit. In a separate development, European digital infrastructure is showing significant momentum, with Sandbrook having announced a €200 million investment in Korus, a platform focused on developing grid-secured land for large-scale data center projects. Meanwhile, venture capital firms backed by the European Technology and Innovation Commission (ETCI) are reportedly splitting over a plan to limit non-European investments, signaling potential internal disagreements within the European VC community.

Startup Valuations and Investor Focus

Several high-profile startups are seeking substantial funding rounds, reflecting strong investor interest, particularly in AI and related technologies. ElevenLabs is targeting a $22bn valuation with a fresh share sale, according to reports. This pursuit of high valuations is occurring against a backdrop of a maturing European startup ecosystem, which is increasingly producing billion-dollar companies Europe's new model. The focus on AI is also drawing attention from prominent investors, such as Thiel Capital's Jack Selby, whose VC firm Copper Sky Capital is raising a $300 million second fund and has been acquiring stakes in fast-growing startups.

Firm Exits and Operational Strategies

Bending Spoons, a lesser-known entity that owns AOL and Vimeo, has achieved public status, serving over a billion people globally with its portfolio of products Bending Spoons remains largely unknown. The firm's public listing comes as the venture capital and private equity industries continue to evolve. In the secondaries market, Evercore has added talent in Asia from Harbour Vest, filling a key role in its Singapore office. This expansion in the secondaries space reflects a growing demand for liquidity and specialized investment strategies within the private equity sector.

Institutional Investor Activity

Institutional investors are actively seeking new consulting services to manage their portfolios. The Town of Wellesley is seeking an investment consultant for its retirement board and Other Post-Employment Benefits trust, indicating a structured approach to selecting advisors for public pension funds. This move by Wellesley highlights the ongoing due diligence and strategic planning that public institutions undertake when allocating capital within the alternative investment space.