Private Equity 3 Days

Last updated: July 9, 2026, 8:30 AM ET

Deal Activity and Platform Builds

Private equity firms continue to actively deploy capital across various sectors. KKR has launched a new medical technology platform, Allyntra, anchored by its existing portfolio company Precipart. In the HR technology space, Shore Capital acquired ThrivePass, while Lightyear invested in Corestream. Recognize made a majority investment in Smartlink, a digital infrastructure services firm. Arrow Global signed a deal to acquire Fusion Specialty Group, a managing general agent that has written approximately £290 million in gross premiums.

Several firms are building out platforms through add-on acquisitions. Bregal-backed Juniper Landscaping acquired two aquatic maintenance firms, Compass Environmental and Aquatic Weeds. Tricor Pacific Capital acquired Arctec Alloys Limited, intending to merge it with Rockmount Research & Alloys to create a North American maintenance welding platform. Agellus Capital-backed Compass MSP acquired The Logic Group, a managed IT and cybersecurity firm. Renovus-backed TJP acquired FX2 Virtual, a life sciences commercial operations firm. Allied Industrial-backed Mat Tech acquired Hook Set Transportation, an industrial hauling company. Wynnchurch-backed Principal Industries acquired GENLED Brands, a provider of LED components. Sentinel acquired Deco Pac, a supplier of cake decorations.

In the environmental services sector, I Squared is set to acquire Milestone Environmental from SK Capital, which operates disposal facilities for oil and gas waste streams. Sallyport made a platform investment in Submar, a pipeline erosion remediation firm. O2 Investment Partners appointed Micah Dawson as operating partner to drive value across its portfolio. Bridge Growth appointed Prosper Vignone as senior principal to support deal execution and portfolio oversight. AEA Investors tapped Adam Biren as partner and head of capital formation – Americas. Halifax appointed Rob Holcomb as operating executive.

Sector Focus and Strategic Investments

Private equity firms are targeting specific sectors, including defense, AI, and healthcare. Tikehau’s Emmanuel Laillier indicated that electronics and mechanical components in defense technology present opportunities, with a new deal expected later this year or next year. Permira is backing Iberian engineering group Quadrante in its second Energy Transition deal Permira backs Quadrante. Advent has taken a 7% stake in Avio to support the Italian space and defense propulsion group's expansion Advent takes stake.

In the AI space, Nvidia is backing voice AI startup Gradium, bringing its seed round to over $100 million. EdVisorly, an AI-native platform for college transfers, secured a $13.3 million Series A round. Crypto VC firm Paradigm is raising $1.2 billion to invest in startups focused on robotics and AI, moving beyond its cryptocurrency roots. Norm, an AI law startup, raised $120 million at a $1.2 billion valuation. Hive raised $15 million for its "silicon brain" technology, promising to cut hourly machine operation costs by 80%.

Healthcare and life sciences continue to attract investment. Frazier Healthcare is set to acquire health tech firm MatrixCare from Resmed. EQT is acquiring Corza Medical's biosurgery unit from GTCR, including the Tacho Sil product portfolio EQT buys Corza unit. NMS-backed Surplus Solutions acquired DCM Bio Services, a life sciences equipment lifecycle management provider.

Market Trends and Investor Strategies

Secondaries market activity is expected to increase in the second half of the year following a volatile first half. Patria’s Patrick Knechtli noted that dealflow in secondaries continues to unlock as DPI issues persist, with the firm's focus on smaller-size secondaries differentiating its latest $677 million fund. JRT Partners intends to increase its exposure to secondaries, considering opportunities in the US, Australia, and Western Europe.

Europe experienced its strongest venture funding quarter in four years, with startups raising $24 billion in Q2. Investors are also focusing on new fundraises. Chemistry Ventures is raising $500 million for its second fund. Solo GP Ashley Smith announced the close of a $25 million Fund II for Vermilion Cliffs Ventures to back startups in AI and security. World Fund and IQ Capital are among the backers of Quantumdiamonds' €91 million round.

Temasek aims to increase its allocations to AI-focused investments, private credit, and core-plus infrastructure assets by March 2031. Novo Holdings is expanding its planetary health portfolio and considering an allocation for private equity GPs to manage, targeting energy and Asia. Mubadala Capital has opened its $25 billion credit platform to outside investors Mubadala Capital opens platform.

In terms of exits, Summit Partners exited Dreampath Diagnostics to Halma. CVC Capital is investing in music distributor Distro Kid, with Insight Partners retaining a significant minority stake. HCPI sold Epicurean Butter to Solina USA. Blackstone acquired Dresser Utility Solutions from First Reserve for its new energy transition fund Blackstone buys Dresser.

European Market and Emerging Opportunities

European startups saw strong venture funding in Q2, with significant activity in various technology areas. Amadeus Capital Partners' Anne Glover commented that AI will transform some SaaS providers. Sifted’s lists highlight fast-growing European startup teams and companies being closely watched by insiders.

Deal activity in Europe includes Apheon acquiring French frozen snack group Alma, with plans for expansion into Benelux, Germany, and the UK. PSG Equity agreed to a majority growth investment in Bright Analytics, a Belgian corporate performance management software provider serving over 1,300 customers. KKR and TA Associates-backed Söderberg is acquiring Benchmark Capital, the UK financial advice business, from Schroders KKR, TA backed Söderberg buys.

Investor intentions indicate a growing interest in specific areas. L1 Impact is targeting $100 million across four funds with a social impact focus in the Middle East and India. LGT suggests that LPs without VC allocations might be overexposed to traditional markets, while KKR's Arctos capitalizes on GP illiquidity. CNPADC is seeking experienced investment consultants across asset classes.

Sports and Real Assets

The sports sector is emerging as an alternative investment area. Blue Owl Capital acquired a minority equity stake in the Cleveland Cavaliers through its Home Court Partners fund, marking its sixth NBA franchise backed by the vehicle Blue Owl buys into Cavaliers. Firms including Apollo, KKR, and Avenue Sports have made deals in the soccer sector over the past year.

In real assets, Blackstone's acquisition of Dresser Utility Solutions signals a focus on the energy transition Blackstone buys Dresser. Avance is backing infrastructure firm Lexxel, with founders and management reinvesting alongside the firm.

Fundraising and Investor Relations

Fundraising dynamics are evolving, with trust between managers and investors becoming paramount. Private equity figures like Scott Hart of Step Stone Group suggest the model itself is not broken, but the illusion of uniform success from the "easy money" era is fading. U.S. investors were active in Q2, with various rankings from Crunchbase News detailing busy startup backers.