Private Equity 3 Days

Last updated: July 10, 2026, 5:30 AM ET

Fundraising and M&A Activity Shows Robust Momentum

Global private equity fundraising continued its strong performance, with Q2 setting a new record for inflows, significantly boosted by the $49 billion raised for MGX Fund I in June. Schroders anticipates a threefold increase in GP-led secondary volumes. In a notable transaction, Apollo Global Management entered the fray for budget airline easy Jet, submitting a higher £5.7 billion bid that superseded Castlelake's prior agreement Apollo bids for budget airline Easy Jet. Mega-deals continue to drive the global M&A market, underscoring private equity's significant role.

HR Tech and Healthcare Sector Sees Deal Activity

The HR tech sector has been a focal point for private equity firms, with multiple deals closing. Shore Capital acquired HR tech firm ThrivePass, while Lightyear invested in HR tech firm Corestream to fuel its continued growth. Ardian closed a $1 billion deal for HR Path, a business specializing in HR consulting and process outsourcing. In the healthcare space, Frazier Healthcare is set to acquire health tech firm MatrixCare from Resmed. KKR has launched Allyntra, a new medical technology platform anchored by existing portfolio company Precipart.

European Tech and Defense Sectors Attract Investment

Europe experienced its strongest venture funding quarter in four years, with startups raising $24 billion in Q2, representing a roughly 33% increase. Sovereign capital, chipmakers, and serial investors are backing new European unicorns. In the defense sector, Tikehau sees opportunities in electronics and mechanical components, with a new deal expected soon. Europe’s newest defense unicorn raised $175 million in a Series B round. Quantum Diamonds secured €91 million with backing from World Fund and IQ Capital. Pasqal's SPAC filings revealed over $500 million in new funding and a valuation of 100 times its revenue.

Secondaries Market Poised for Increased Activity

The secondaries market is anticipating a pickup in activity during the second half of the year following a turbulent first half, according to market participants. Patria's Patrick Knechtli noted that secondaries deal flow continues to unlock, despite persistent DPI issues, with their latest fund closing on $677 million ahead of target. Schroders expects GP-led secondary volumes to treble.

Operational Expertise and Strategic Acquisitions Drive Growth

Private equity firms are bolstering their operational capabilities with new hires. Blue Wolf appointed Anne Bailey as lead operating partner, while George Judd will continue as an operating partner. O2 Investment Partners tapped Micah Dawson as an operating partner to drive value across its portfolio. Halifax appointed Rob Holcomb as an operating executive, bringing experience from Johnson & Johnson. AEA Investors named Adam Biren as partner and head of capital formation – Americas.

Portfolio Company Acquisitions and Platform Builds

PE-backed Pye-Barker acquired Response TECH, a security and life safety firm. Bregal-backed Juniper Landscaping expanded its commercial landscaping platform by acquiring two aquatic maintenance firms, Compass Environmental and Aquatic Weeds. Coalesce-backed Decision HR acquired payroll service Paymasters Inc. Tricor Pacific Capital acquired Arctec Alloys Limited, intending to merge it with Rockmount Research & Alloys to form a North American welding platform. Wynnchurch-backed Principal Industries acquired GENLED Brands, a provider of LED components. Agellus Capital-backed Compass MSP acquired managed IT and cybersecurity firm The Logic Group. Renovus-backed TJP acquired life sciences commercial operations firm FX2 Virtual. Thirty-5 Capital-backed Paddletek acquired pickleball paddle company PIKKL. Allied Industrial-backed Mat Tech acquired industrial hauling company Hook Set Transportation. Investcorp-backed KSS acquired Strack Scale Service, which provides calibration and maintenance for industrial weighing systems. Arlington launched a new naval services platform, Highwater, by combining portfolio company Eptec Defence with AMP United.

Investment Firm Activities and Strategic Stakes

B Capital-led investor group is set to acquire Russell Investments, with CalPERS also participating. Charlesbank completed an investment in secondaries PE firm Overbay, with the Overbay team remaining significant shareholders. EQT is acquiring the biosurgery business of Corza Medical from GTCR EQT buys Corza Medical's biosurgery unit from GTCR. KKR and TA Associates-backed Söderberg is acquiring Benchmark Capital from Schroders KKR and TA Associates-backed Söderberg buys Schroders' advice arm Benchmark. CVC Capital plans to invest in music distributor Distro Kid, with Insight Partners retaining a significant minority stake.

Investor Intentions and Market Outlook

The Korean government-related Industrial Accident Compensation Insurance and Prevention Fund is seeking domestic blind PE/VC funds for 2026 with a commitment of 270 billion Korean won. Separately, Korean Teachers' Credit Union is looking to commit 100 billion won to domestic blind-pool VC funds for 2026 Korean Teachers' Credit Union seeks domestic blind-pool VC funds. L1 Impact is targeting $100 million across four funds with a social impact focus in the Middle East and India. Temasek aims to increase allocations to AI-focused investments, private credit, and infrastructure assets by March 2031. Searchlight's James Redmayne sees opportunities in B2B events and blue-collar services, noting a narrowing bid-ask gap for quality assets will lead to selective deal activity in H2. He also noted a bifurcation in the market, with premium assets attracting buyer interest while more cyclical businesses struggle.

Venture Capital and Startup Funding

Paradigm, a crypto VC firm, has raised $1.2 billion to invest in startups focused on robotics and AI, expanding beyond its cryptocurrency roots. AI law startup Norm raised $120 million in a Series C round led by Khosla Ventures, achieving a $1.2 billion valuation. EdVisorly, an AI-native platform for college transfers, secured $13.3 million in Series A funding. Solo GP Ashley Smith announced the close of a $25 million Fund II for Vermilion Cliffs Ventures, targeting startups in AI and security. VC firm Chemistry is raising $500 million for its second fund, launched by alumni from Bessemer, Index Ventures, and Andreessen Horowitz. Nvidia is backing voice AI startup Gradium, contributing to a seed round exceeding $100 million.

Sports and Entertainment Investments

Blue Owl Capital has acquired a minority equity stake in the Cleveland Cavaliers through its Home Court Partners fund, marking its sixth NBA franchise investment Blue Owl buys into the Cavaliers. The World Cup has highlighted deal activity in the soccer sector, with firms like Apollo, KKR, and Avenue Sports involved in recent transactions. Bruin Capital reportedly fetched $530 million for its sports technology company Full Swing.