Private Equity 3 Days

Last updated: July 9, 2026, 5:30 AM ET

Private Equity Dealmaking Shows Resilience Amid Economic Headwinds

Despite a cautious market, private equity firms continue to pursue strategic acquisitions and growth investments across various sectors. Searchlight's James Redmayne pointed to narrowing bid-ask gaps, anticipating increased deal activity in the second half of the year for companies with differentiated strategies. This sentiment is echoed by PSG Equity, which agreed to a majority growth investment in Belgian corporate performance management software firm Bright Analytics, serving over 1,300 customers. Arrow Global is acquiring Fusion Specialty Group, a managing general agent that has underwritten approximately £290 million in gross premiums. In the industrial sector, Tricor Pacific Capital snapped up Arctec Alloys Limited, planning to merge it with an existing portfolio company to form a North American maintenance welding platform. Similarly, River Associates acquired auto parts provider Horsepower Automotive Group, which designs and distributes performance parts for adventure vehicles.

Tech and AI Investments Continue to Draw Significant Capital

The technology sector, particularly artificial intelligence, remains a focal point for venture capital and private equity. Crypto VC firm Paradigm has raised $1.2 billion for its latest fund, aiming to invest in what it terms the "technical frontier," extending beyond crypto to robotics and AI. EdVisorly secured a $13.3 million Series A to scale its AI-native platform for college transfer process automation. Nvidia is backing voice AI startup Gradium, contributing to a seed round that exceeded $100 million. Solo GP Ashley Smith announced a $25 million second fund, Vermilion Cliffs Ventures Fund II, to back startups in AI and security. Bridgepoint is backing French HR management software provider Skello with a €200 million minority investment, supporting its AI-powered platform for frontline workers. Meanwhile, AI law startup Norm has raised $120 million in a Series C round led by Khosla Ventures, reaching a unicorn valuation of $1.2 billion.

Energy Transition and Infrastructure Projects Attract PE Interest

The energy transition and infrastructure sectors are seeing considerable private equity activity. Blackstone has agreed to acquire Dresser Utility Solutions, a supplier of natural gas and water measurement equipment, from First Reserve through its new energy transition fund Blackstone buys Dresser Utility Solutions. Permira is backing Iberian engineering group Quadrante with a strategic investment under its Energy Transition strategy Permira backs Iberian engineering group Quadrante. Avance has backed infrastructure firm Lexxel, with founders reinvesting alongside the firm. I Squared is set to acquire Milestone Environmental from SK Capital; Milestone operates waste disposal facilities for the oil and gas industry. Capmont plans to carve out Dyneon, a fluoropolymer manufacturer serving sectors like semiconductors and electric vehicles, from 3M Deutschland.

Sector-Specific Deals Span HR Tech, Healthcare, and Niche Markets

Private equity firms are actively acquiring companies in specialized sectors, including HR technology and healthcare. Shore Capital has acquired HR tech firm ThrivePass. Ardian has closed a €1 billion deal for HR Path, a business process outsourcing firm. Renovus-backed TJP acquired life sciences commercial operations firm FX2 Virtual. Frazier Healthcare is acquiring health tech firm Matrix Care from seller Res Med. In the industrial services space, Sentinel has acquired cake decorations supplier DecoPac from Kohlberg. Agellus Capital-backed Compass MSP acquired IT and cybersecurity firm The Logic Group. NMS-backed Surplus Solutions acquired life sciences equipment lifecycle management firm DCM BioServices.

Sports and Entertainment Investments Gain Momentum

The sports and entertainment industries are attracting significant private equity interest. Blue Owl Capital has acquired a minority stake in the Cleveland Cavaliers through its Home Court Partners fund, marking its sixth NBA franchise investment Blue Owl buys into the Cavaliers. Bruin Capital is selling golf simulation company Full Swing to Versant Media for $530 million. CVC Capital is reportedly investing in music distributor Distro Kid, with Insight Partners retaining a minority stake.

Fundraising and Investor Strategies Indicate Market Shifts

Fundraising activities reveal a strategic recalibration among investors. World Fund and IQ Capital are among the backers of Quantum Diamonds' €91 million round. L1 Impact is targeting $100 million across four funds with a social impact focus in the Middle East and India. Temasek aims to increase its allocations to AI-focused investments, private credit, and infrastructure assets by March 2031. Novo Holdings is expanding its planetary health portfolio and considering allocating capital to private equity GPs. Mubadala Capital has opened its $25 billion credit platform to outside investors for the first time Mubadala Capital opens $25bn credit platform.

Secondaries Market Activity and Investor Returns Under Scrutiny

The secondaries market continues to present opportunities, though investor returns are a subject of discussion. Patria's Patrick Knechtli noted that secondaries dealflow remains active, with the firm's focus on smaller deals differentiating its latest $677 million fund. JRT Partners intends to increase its exposure to secondaries across the US, Australia, and Western Europe. A commentary in PE International suggests that the illusion of uniform success in private equity is fading, urging a move beyond the "easy money" era. GPIF's private equity portfolio climbed 26%, adding approximately $1.4 billion year-on-year, despite a challenging environment.