Private Equity 3 Days

Last updated: July 18, 2026, 8:30 PM ET

AI Funding Continues to Dominate Deal Flow, Valuations Under Scrutiny

Artificial intelligence remains the primary driver of venture capital investment, with numerous AI-focused companies securing substantial funding rounds. Fireworks AI closed a significant $1.5 billion financing round, while travel agency Fora achieved unicorn status with a $60 million Series D round, valuing the company at $1 billion. Despite the influx of capital, some venture capitalists are urging caution. Neil Rimer of Index Ventures predicts that the vast wealth generated by AI will eventually be redistributed, and venture capital firms like Founders Fund have hired former OpenAI executive Ryan Beiermeister as a partner. However, the sheer volume of AI seed funding is making it more challenging for non-AI startups to secure pre-seed investment. Furthermore, venture capital activity in Asia saw a multiyear peak in Q2 2026, with investors pouring $42.8 billion into startup funding rounds across the continent, driven by China's $7.4 billion DeepSeek raise.

Private Equity Sector Sees Broad Activity Across Industries

The private equity landscape is active across a wide range of sectors, from industrial services and healthcare to real estate and automotive. Borgman invested in CMW, a concrete production equipment distributor, to fuel its growth invested in distributor. Percheron-backed Big Brand Tire & Service is set to acquire automotive service firm Belle Tire, while Granite Creek promoted Pete Pacelli to managing director to lead its agribusiness activities. In the healthcare space, Archi Med completed a $1.1 billion take-private of biopharmaceutical company Esperion Therapeutics completed take-private, and Summit acquired Kids Bowel & Bladder, a health-focused continuing education provider acquired provider. Private equity firms are also targeting the ambulance and medical transport services sector, with KKR, Ares, Grant Avenue, and Tiger Infrastructure Partners making investments. Charterhouse is acquiring French building maintenance group Batibig, which generates over €500 million in annual revenue, and Arrow Global Group acquired Borio Mangiarotti, a Milan-based real estate development and management business acquired developer. In other industrial deals, One Equity is set to acquire pipe fabrication and distribution firm Epic Piping, and CD&R-backed White Cap will acquire concrete distributor Gierke Robinson.

European Markets and Deal Structures Show Dynamic Trends

European private equity and venture capital are exhibiting distinct trends, with some firms expanding aggressively while others navigate complex deal structures and potential outflows. EQT is reportedly in talks to lead a €5 billion funding round for Mistral AI, and EQT's Scaleup Fund has also been involved in a €526 million continuation vehicle involved in vehicle. Mollie is planning a €350 million expansion plan in Europe planning expansion, and EQT topped a LY-Bain consortium's tender offer for Japanese internet platform operator Kakaku.com, raising the bid to ¥3,450 per share topped tender offer. H.I.G. Capital has launched Highground Living, a new German residential platform valued at €1 billion launched platform. However, Partners Group warned that evergreen outflows could reach $20 billion and noted that private equity accounts for two-thirds of its underperforming assets warned of outflows. Ardian is arranging unitranche financing for Astorg's buyout of Barkene arranging financing, and Bridgepoint is acquiring a majority stake in German laboratory testing business GBA Group from Ardian acquiring stake. Meanwhile, Arlington Capital is taking Gooch & Housego private in a £345.6 million deal taking private.

Fund Governance, Private Credit, and Secondary Markets Face Growing Scrutiny

The broader private markets are experiencing increased scrutiny regarding fund governance and liquidity. A report from Paul, Weiss highlights that scrutiny on fund governance has intensified amid adversity, with limited partners seeking greater control and stronger protections. In private credit, continuation vehicles are emerging as a key liquidity tool, but many LPs are still opting to cash out amid rising market scrutiny. Aston Martin is in discussions with a group of funds, including HPS Investment Partners, to raise fresh debt and bolster its cash reserves to raise debt. Germany's KENFO plans to increase its allocation to private markets to 30% over the next two years, while trimming its private equity exposure trim private equity. M&G is building infrastructure secondaries exposure and targeting continuation vehicles building exposure. Additionally, Assurances du Crédit Mutuel and Wafra are expanding their stakes in Ardian, while AXA sells its 10% holding expanding stakes.