Private Equity 3 Days

Last updated: July 25, 2026, 5:30 AM ET

Startup Funding and AI Dominance

Startup investors have been actively deploying capital across a diverse range of sectors, with a notable surge in funding for AI-related ventures. This week's largest funding rounds included a physical AI startup, underscoring the growing interest in artificial intelligence applications poured capital. In the fintech space, General Catalyst has taken the lead over Y Combinator, participating in more than $5 million deals in the second quarter. Globally, rounds of $1 billion or more have accounted for 60% of all startup funding this year, totaling approximately $320 billion and driving overall investment figures went to rounds. AI laboratories, in particular, have seen significant valuation growth, with 10 frontier labs joining the Crunchbase Unicorn Board in June, collectively adding over $65 billion in value. This AI boom is seen as a transformative force, with one opinion suggesting it will fundamentally reshape the global financial value chain, driving operating costs to near-zero and enabling highly personalized products. Amidst this AI surge, there's also a debate on the best approach to AI infrastructure, with advice to build resilient, vendor-agnostic systems rather than relying on proprietary hyperscalers.

Private Equity Dealmaking Across Sectors

Private equity firms have been active across a variety of industries, from healthcare and technology to sports and consumer goods. Longshore has invested in health tech firm Prochant to support its next phase of growth. In the dental sector, GTCR-backed Dentalcorp has acquired Northstar Dental Partners. Sky Knight is set to invest in Apex Infusion, a provider of infusion services, with FFL Partners remaining a minority investor. Providence Equity has invested in SCG, a UK communications and IT provider serving approximately 35,000 small and medium-sized businesses. Bain Capital is acquiring UK vitamin company Vitabiotics for international expansion, with the company selling brands like Pregnacare and Wellman in over 70 countries. Nazca Capital has acquired Madrid Artes Digitales, an operator of immersive cultural experiences. In the energy sector, Ridgewood Infrastructure-backed MN8 will acquire power producer Greenbacker for $375 million. Blackstone has agreed to sell battery storage developer Aypa Power to Brookfield for $7 billion, including the company's operating, under-construction, and contracted project portfolio.

Specialized Investments and Acquisitions

Private equity firms are also making targeted investments in specialized areas. In veterinary care, several firms including Warburg Pincus and Great Point Partners have been involved in seven deals within the sector. Fundamental Advisors has acquired aerial services operator Blue Sky Helicopters, which serves utility, government, and public safety customers. Tinicum is backing specialty chemicals distributor GracoRoberts. Vesterra Capital has acquired facilities maintenance platform PHFM, establishing it as an independent provider. Bowmark Capital is becoming a shareholder in SFG20, a software platform for facilities management. In the cybersecurity space, Coalesce Capital has acquired Workstreet, citing the expansion of cybersecurity spending and regulatory compliance complexity. TJC is set to acquire electrical power firm Sunbelt Solomon from Trilantic North America, with Sunbelt Solomon operating 42 locations across the US, Canada, and Chile.

Fundraising and Market Trends

The private equity fundraising landscape remains active, with significant capital being raised for various strategies. Harbour Vest has closed its seventh co-investment program at $4.75 billion, exceeding its target closes seventh co-investment programme. Blackstone is nearing its target for its latest flagship fund, Strategic Partners Fund X, which is seeking $22.5 billion and is the second-largest active fundraise by target in the secondaries market. Step Stone's venture capital secondaries fund has surpassed $1 billion, with Ohio's public school employees' pension fund being a recent LP with a $50 million commitment. Partners Group has closed its fourth direct infrastructure program above $15 billion, marking its largest infrastructure raise to date and is already over 40% committed closes fourth direct infrastructure programme. Apollo is targeting up to $20 billion for private credit deployment in Mexico, focusing on infrastructure build-out driven by nearshoring targets up to $20bn. Townsend has raised $2 billion for real estate secondaries, with $1 billion already deployed, focusing on data center investments.

Secondaries Market Dynamics and Investor Sentiment

The secondaries market is experiencing robust activity, with private real estate managers increasingly utilizing continuation vehicles. This trend signals a shift away from the market's historical reputation as a last resort for distress-driven strategies. More than half of secondaries investors are now operating evergreen vehicles, deploying capital into a broadening range of opportunities. In Europe, a significant war chest is being amassed, and Astorg is actively pursuing exits, with its co-managing partner emphasizing a mid-market focus to maximize exit choices amidst a volatile macro backdrop and a slightly reducing valuation gap. Investor sentiment generally remains positive, with a "risk-on" approach, but managers are being challenged to clearly differentiate their strategies. However, challenges persist, with AI disruption risk identified as a potential deal killer in some instances. The use of leverage in continuation funds is also a point of discussion, with differing views on its appropriate application among lenders and buyers.

Corporate Activity and Strategic Moves

Beyond direct investments and fundraising, several companies are undergoing significant corporate transactions. Matador Resources Company is set to acquire EnCap-backed Paloma Permian for nearly $1.3 billion, along with additional acreage in West Texas and Southeast New Mexico. Softbank is reportedly eyeing the acquisition of ETH spinout Gravis. In the beverage sector, Platinum and Nestlé have signed a $5.6 billion joint venture. Cinven is acquiring software firm Salsify, which has a network of over 2,000 customers. IK Partners is selling MDT technologies, a maker of smart building automation components, to BU Bregal Unternehmerkapital. In the sports sector, Harbinger is taking a minority ownership stake in MLB's Athletics as part of the club's equity financing for a new ballpark in Las Vegas. Eli Manning, the former NY Giants quarterback, is also increasing his involvement in private equity, discussing investments in sports and govtech.

Fundraising and Team Appointments

Fundraising continues across various strategies, with firms announcing new capital raises and team expansions. Athena Capital has recruited Karim Bousta as an investment partner and Francesca Cornelli to its operating partners council. KKR has appointed Roy Gori as a senior advisor to focus on strategic opportunities in global financial services and insurance, particularly in Asia Pacific and international markets. Epiris has named Owen Wilson as its new managing partner, succeeding Bill Priestley who will retire in October 2026. In other firm news, Sifted has acquired Onstage to expand its founder events business.

Valuations and Growth Capital

Specific company valuations are emerging, indicating strong growth and investor confidence. Fintech firm Revolut has reportedly reached a $115 billion valuation in an employee share sale. Tocqueville Asset Management has secured growth capital from Leon Financial Network to generate long-term enterprise value. My Pension Expert has grown to approximately £2 billion in assets under administration since Palatine's initial investment four years ago, and Valeas Capital Partners is now investing in the firm as Palatine exits. In a significant deal, Lead Edge and Hamilton Lane led a $625 million transaction for Ninja One, a Saa S provider that has generated substantial returns for its investors.

Geographic Focus and Sector Diversification

Private equity activity is spanning various geographic regions and a wide array of sectors. In Europe, Astorg's co-managing partner highlights the importance of mid-market focus for exit optionality amidst current market conditions. The European startup scene is also characterized by high salaries in certain firms. China's RMB secondaries market has completed its first full cycle, presenting both opportunities and risks for investors seeking returns. Across different sectors, health tech firms are attracting significant attention, with Knox Lane acquiring Cross Country Healthcare Inc and Truehelm-backed Wildflower Health acquiring maternity and women’s pelvic health platform Every Mother. Equality Asset-backed Mindoula has acquired Janus Healthcare Partners and Valera Health, focusing on healthcare organizations serving difficult-to-engage individuals and families.

Infrastructure and Debt Funding

Infrastructure and debt funding are also key areas of activity. AI, dual-use technologies, and spacetech are emerging as prominent sectors for debt funding. Blackstone is reportedly seeking up to $20 billion for private credit deployment in Mexico, aiming to capitalize on nearshoring-driven infrastructure development targets up to $20bn. In the real estate sector, Townsend has raised $2 billion for its real estate secondaries fund, with an early focus on data center investments.

Investor Allocations and Benchmarking

Investor behavior in private equity allocations shows a trend towards stability, with a majority keeping their allocations unchanged in the first half of 2026, according to PEI's H1