Private Equity 3 Days

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

Fundraising and Investor Activity

Private equity fundraising reached a new record in the second quarter, largely driven by the $49 billion raised for MGX Fund I in June. Korean investment organizations are actively seeking domestic blind PE/VC funds for 2026, with the Industrial Accident Compensation Insurance and Prevention Fund looking to commit 270 billion Korean won and the Korean Teachers' Credit Union planning to commit 100 billion won Korean government-related investment organization seeks domestic blind PE/VC funds. Temasek intends to increase its allocations to AI-focused investments, private credit, and core-plus infrastructure assets by March 2031, noting that EMEA direct investments have lagged other markets. Australian pension fund Rest is also increasing its private markets exposure, with a specific focus on PE and infrastructure.

Dealmaking and Portfolio Activity

Deal flow in the secondaries market is expected to accelerate in the second half of the year following a volatile first half. Charlesbank has completed an investment in the secondaries PE firm Overbay, with the Overbay team retaining significant long-term shareholder status and control over investment activities. Ardian closed a $1 billion deal for HR Path, a firm specializing in HR consulting, implementation, and outsourcing. In the environmental services sector, Ares, Littlejohn, Palladium, and TPG are reportedly evaluating the sale of four environmental service providers, with Kohlberg exiting its investment in a cake decorations company to Sentinel.

Sector-Specific Investments and Trends

The defense sector is seeing increased activity, with Europe posting its strongest venture funding quarter in four years amidst gains in the UK and upended M&A activity. Tikehau Capital sees opportunities in electronics and mechanical components within defense tech, with a new deal anticipated later this year or early next year. AI continues to be a significant investment theme, with Nvidia backing voice AI startup Gradium, bringing its seed round to over $100 million. Paradigm is raising $1.2 billion to invest in "technical frontier" startups, expanding beyond cryptocurrency to include robotics and AI.

Firm Appointments and Strategy

Blue Wolf has appointed Anne Bailey as lead operating partner, with George Judd continuing as an operating partner. O2 Investment Partners has brought on Micah Dawson as an operating partner to drive value across its portfolio companies. AEA Investors has named Adam Biren as partner and head of capital formation for the Americas. Searchlight Capital’s James Redmayne views B2B events and blue-collar services as high-conviction areas, noting that the bid-ask gap for quality assets is narrowing, anticipating selective deal activity in the second half of the year.

Startup Funding and Valuations

Mercor is reportedly in talks for a $20 billion valuation, a significant increase from its $10 billion valuation in October. Europe’s newest defense unicorn raised $175 million in a Series B round. AI law startup Norm secured a $120 million Series C round led by Khosla Ventures, reaching a $1.2 billion valuation. EdVisorly, an AI-native platform focused on college transfers, raised $13.3 million in a Series A round. Solo GP Ashley Smith announced the close of a $25 million second fund targeting startups in AI, security, and other sectors.

Portfolio Company Acquisitions and Divestitures

PE-backed Pye-Barker acquired Response TECH, a security and life safety firm. Bregal-backed Juniper Landscaping acquired two aquatic maintenance firms, Compass Environmental and Aquatic Weeds. Coalesce-backed Decision HR acquired payroll service provider Paymasters Inc. Tricor Pacific Capital acquired Arctec Alloys Limited, planning to merge it with Rockmount Research & Alloys to form a North American maintenance welding platform. KKR unveiled a new medical tech platform called Allyntra, anchored by existing portfolio company Precipart.

Venture Capital and Early-Stage Investments

Nandan Nilekani has stepped down from his GP role at Fundamentum as the firm launched its third fund of $200 million, targeting AI and fintech startups in India. Charles Hudson of Precursor Ventures shared common mistakes observed in investing in over 500 startups, noting headwinds for early-stage founders. Europe saw its strongest venture funding quarter in four years, with startups raising $24 billion in Q2. Chemistry Ventures, founded by alumni from Bessemer, Index Ventures, and Andreessen Horowitz, is raising $500 million for its second fund. Accel is doubling down on energy startup Axle.

Strategic Investments and Joint Ventures

Decathlon Capital Partners is investing in diagnostics firm Amprion Inc to support the expansion of its testing capacity for neurodegenerative diseases. CVC Capital plans to invest in music distributor Distro Kid, with Insight Partners retaining a significant minority stake. B Capital-led investor group, including the California Public Employees' Retirement System, will acquire Russell Investments. EQT is acquiring the biosurgery business of Corza Medical from GTCR, including the Tacho Sil product portfolio EQT buys Corza Medical's biosurgery unit. KKR and TA Associates-backed Söderberg is acquiring Schroders' advice arm, Benchmark Capital KKR and TA Associates-backed Söderberg buys Schroders' advice arm.