Private Equity 3 Days

Last updated: July 16, 2026, 2:30 PM ET

AI and Tech Acquisitions Drive Deal Activity

Private equity firms are increasingly investing in and acquiring technology companies, particularly those leveraging artificial intelligence. Verdane acquired stakes in four Trifork Labs technology businesses, including event-sourcing specialist Axoniq, digital health business Dawn Health, WiFi photo frame software provider Frameo, and cybersecurity company XCI. Verdane also in a series of technology businesses from bp, spanning energy-industry digitalization and transport innovation. Serent-backed Raintree AI firm Spike Technologies, while pipe fabrication and distribution firm Epic Piping. In the AI space an AI services provider named Ode with Anthropic, with backing from multiple other investors. Meanwhile, EQT’s €5bn to lead a funding round for Mistral AI.

Real Estate and Infrastructure See Continued Investment

The real estate sector continues to attract private equity interest, with secondaries playing a significant role. H.I.G. Capital launched a €1 billion German residential platform called Highground Living. Arrow Global Milan real estate developer Borio Mangiarotti to its portfolio. The secondaries market for real estate is becoming a permanent channel for capital flow, with managers seeking liquidity and investors looking for exposure to in-demand asset classes. M&G is building its infrastructure secondaries exposure, targeting continuation vehicles. In a significant take-private deal, Ares completed the $1.7 billion acquisition of Whitestone REIT.

Healthcare and Life Sciences Draw PE Focus

The healthcare and life sciences sectors remain a strong focus for private equity investment and acquisitions. Partners picked memory care community Alamar Senior Living. ArchiMed took biopharma firm Esperion Therapeutics private for $1.1 billion. In a move indicating consolidation, Inflexion acquired Primed Group, a German provider of single-use medical consumables, from Paragon Partners. Pincus-led investor a controlling stake in pharmacy Pantherx Rare from Nautic Partners, General Atlantic, and The Vistria Group. Ardian acquired a majority stake in Pflegia, a digital healthcare recruitment platform.

Large-Scale Deals and Takeovers Signal Market Activity

Several large-scale transactions underscore the ongoing activity in the private equity market. KKR and Energy Capital Partners sweetened their takeover bid for DCC, lifting the proposal to £5.81 billion. CVC Capital Partners and Groupe Bruxelles Lambert’s offer for Italian drugmaker Recordati received board backing. Arlington Capital Gooch & Housego private in a £345.6 million deal. In a substantial financing package, Apollo is in advanced talks to provide nearly $3 billion to the New York Yankees. Francisco Partners is in advanced talks to acquire a controlling stake in construction software maker Command Alkon for as much as $1.3 billion.

Secondaries Market Evolves as Liquidity Tool

The secondaries market is increasingly being utilized as a sophisticated capital formation tool, offering liquidity and repositioning platforms. Carlyle AlpInvest its second single asset-focused fund on $1.7 billion, surpassing its target and predecessor fund. Asante is building its APAC secondaries business with a new hire from Evercore. Investors are using secondaries to unlock liquidity and retain high-conviction assets. Teachers exploring a private equity secondaries sale to reduce its allocation to buyout assets and increase liquidity. Serone, credit a buyout secondaries strategy.

Benchmarking and Governance Under Scrutiny

As the private equity industry matures, there is a growing emphasis on performance measurement and fund governance. The wide range of methods used by large limited partners highlights an industry-wide need for consensus on performance benchmarking as reported by PE International. Amid fundraising pressures, LPs are seeking greater control, improved economics, and stronger protections against succession and zombie fund risks. Germany's KENFO plans to increase its private markets allocation to 30% but will trim its private equity exposure according to Bloomberg.

Asia and Europe Show Strong Funding and Deal Activity

Startup funding in Asia, particularly in China, reached a multiyear peak in the second quarter, driven by significant AI-related raises, with investors pouring $42.8 billion into rounds across the continent. In Europe, while rounds are getting larger, fewer companies are closing them Sifted reports. Fintech funding surged nearly 23% in the first half of 2026, with investors concentrating bets on AI and financial infrastructure, though deal counts declined according to Crunchbase. Advantage Partners is targeting Japanese firms shielded from foreign takeovers as part of its strategy.

Consolidation and Strategic Investments Mark Sector Trends

Consolidation is a notable trend, with larger firms acquiring smaller players and strategic investments shaping various sectors. KKR is acquiring a 51% stake in Thomson Reuters’ global print business for $500 million, with Thomson Reuters retaining a 49% stake in the joint venture. Apollo, Clearlake firms acquiring other private markets entities. Verdane acquired a portfolio of minority stakes in technology businesses from bp. In the travel sector unicorn status, raising $60 million in a Series D round.

Venture Capital Dynamics and AI Integration

Venture capital is seeing shifts in strategy and a strong integration of AI. Greylock capped its new fund at $1.5 billion to focus on a limited number of investments and provide more dedicated support to founders. While AI mega-seed rounds grab headlines, historical data indicates that very large first financings may not always yield venture-scale returns due to high entry valuations. Robotics startup $55 million in Germany's largest ever seed round. Beckham’s health $1 billion from General Catalyst's Customer Value Fund, which does not make equity investments.

Private Equity Navigates Challenges and Opportunities

Private equity firms are navigating various challenges, including the need for sophisticated benchmarking and increased LP scrutiny. Partners Group that evergreen outflows could hit $20 billion, with private equity accounting for two-thirds of its underperforming assets. CalPERS posted a preliminary net investment return of 14.8% for the year ending June 2026, with private equity being a significant contributor. Montagu's Christoph that deal complexity presents opportunities, while the broader GP-to-GP market remains subdued.