Private Equity 3 Days

Last updated: July 18, 2026, 2:30 AM ET

AI and Fin Tech Funding Continues to Dominate Deal Flow

The venture capital landscape remains heavily tilted towards AI and Fin Tech, with significant capital injections into these sectors. Fireworks AI secured a substantial $1.5 billion financing round, underscoring the massive investment flowing into enterprise AI startups. Travel agency Fora achieved unicorn status, raising $60 million in a Series D round that valued the company at $1 billion. Meanwhile, venture funding into Fin Tech startups climbed nearly 23% year-over-year in H1 2026, reaching $42.8 billion, though the number of deals fell more than 25%, indicating a concentration on larger rounds. In Asia, overall startup funding surged to a multiyear peak in Q2 2026, driven by China's $7.4 billion DeepSeek raise, contributing to a total of $42.8 billion poured into the region's startups. Despite the influx of capital, some venture capitalists, like Neil Rimer of Index Ventures, predict that the wealth generated by AI will eventually need to be redistributed.

Private Equity Eyes Infrastructure, Healthcare, and Niche Sectors

Private equity firms are actively pursuing deals across a diverse range of sectors, from infrastructure and healthcare to specialized services. H.I.G. Capital launched a €1 billion German residential platform named Highground Living launched a €1 billion platform. In the healthcare space, Archi Med announced the closing of its $1.1 billion take-private of Esperion Therapeutics, while Ares Management completed its $1.7 billion acquisition of Whitestone REIT, taking the U.S. retail property owner private completed its $1.7 billion acquisition. KKR, Ares, and Tiger Infrastructure Partners are among those investing in emergency medical services, with five deals noted in the sector. Charterhouse Capital Partners is set to acquire French building maintenance group Batibig for over €500 million in annual revenue. BlackRock's GIP is acquiring commercial solar power firm Summit Ridge, and Apollo Global Management is in advanced talks to provide a nearly $3 billion financing package for the New York Yankees provide a nearly $3 billion financing package.

Deal Activity Highlights Strategic Acquisitions and Valuations

Strategic acquisitions and evolving valuation methodologies are shaping the private equity landscape. EQT is reportedly in talks to lead a funding round for Mistral AI with its €5 billion Scaleup Fund. In Japan, EQT has raised its tender offer for internet platform operator Kakaku.com to ¥3,450 per share, an increase from its initial ¥3,000 bid raised its tender offer. Francisco Partners is in advanced negotiations to acquire a controlling stake in construction software maker Command Alkon for up to $1.3 billion to acquire a controlling stake. Meanwhile, the trend of complex, multi-stage funding rounds is highlighted by nuclear startup Valar Atomics being in talks to raise new funding at a $6 billion valuation, potentially masking true entry prices.

Secondaries Market Shows Resilience and Growth

The secondaries market is demonstrating continued activity, with institutional investors increasingly turning to real estate secondaries and pension plans exploring divestments. Growing investor confidence is fueling deal flow in real estate secondaries, as global buyers seek exposure to in-demand asset classes. Louisiana Teachers is considering a private equity secondaries sale to reduce its allocation to buyout assets and increase liquidity is considering a private equity secondaries sale. Credit manager Serone has launched a buyout secondaries strategy, making strategic hires to lead the new initiative. Carlyle Alp Invest closed its second single-asset-focused fund on $1.7 billion, surpassing its target and benefiting from LP sophistication around continuation vehicles. M&G is also increasing its infrastructure secondaries exposure, targeting continuation vehicles for assets requiring additional time and capital for growth.

Firm Promotions and Cross-Sector Investments

Firms are making strategic personnel moves and diversifying their investment portfolios. Granite Creek has promoted Pete Pacelli to managing director, where he will lead agribusiness activities as the firm expands its focus on the agriculture value chain. Borgman is investing in concrete production equipment distributor CMW to support its growth through expanded service offerings and market entry. Verdane has acquired stakes in four Trifork Labs technology businesses, including event-sourcing specialist Axoniq, digital health firm Dawn Health, WiFi photo frame provider Frameo, and cybersecurity company XCI. Guardian has sold manufacturer Precision Roll Solutions to American Roller Company, a deal following Guardian's acquisition of PRS in 2022 has sold manufacturer.

European Market Activity and AI Integration

European markets are seeing increased deal sizes, although the total number of funding rounds is decreasing, indicating a consolidation trend. European rounds are getting larger, but fewer companies are closing them. Fintech funding in Europe saw a significant surge in H1 2026, with investors concentrating bets on AI and financial infrastructure. The integration of AI is a key theme, with companies like Visma leveraging AI to reshape accounting practices. EQT is reported to be in exclusive talks to lead a substantial funding round for AI chip designer Mistral AI, potentially worth billions to lead a substantial funding round.

LP Scrutiny and Fund Governance

Investors are placing greater emphasis on fund governance and performance, particularly amid market pressures. Scrutiny on fund governance has intensified amid adversity, with LPs seeking greater control, improved economics, and stronger protections against succession and zombie fund risks. Germany's KENFO plans to increase its allocation to private markets from 25% to 30% over the next two years, while trimming its exposure to private equity plans to increase its allocation. Partners Group has warned that evergreen outflows could reach $20 billion, with private equity accounting for two-thirds of its underperforming assets. Top LPs are employing a wide variety of benchmarking approaches for their private equity investments, highlighting the complexity in performance assessment are employing a wide variety of benchmarking approaches.