Private Equity 3 Days

Last updated: July 29, 2026, 5:30 AM ET

Private Equity Firms Target Services and Technology Amid AI Boom

Private equity continues to exhibit strong interest in the services sector, with AI playing a significant role in enhancing productivity and customer outcomes. TowerBrook’s Joseph noted that business, financial, and healthcare services present the strongest opportunities, alongside consumer verticals where AI integration is proving beneficial. This sentiment is echoed by, who believes that while AI is prevalent, a "fatigue" with digitalization indirectly boosts the value of live events and physical scarcity. Tabet also indicated that sellers are becoming more realistic on asset pricing, creating new investment opportunities in sectors like communications, live events, and education that are being indirectly supported by the AI landscape.

In technology, AI is driving significant investment. Dwelly, an AI rollup startup, raised $170 million backed by EQT and General Catalyst. Similarly, Carlyle has backed cybersecurity firm Secturion, marking its first investment from a new aerospace, defense, and industrials platform. The intersection of AI and cybersecurity is particularly hot, with AI seed investors flocking to the space, having already poured $855 million into over 150 seed-stage rounds this year. Bridgepoint is set to acquire Lansweeper, a company whose data platform leverages technology and AI to map IT networks, and Ridgeview is considering a £545 million take-private offer for automotive software company Pinewood. Thorne Science has raised $10 million in a Series A round led by Will Ventures for its AI-powered toilet camera technology that tracks gut health.

Cross-Sector Dealmaking and Strategic Acquisitions

Dealmaking activity spans various sectors, with a notable focus on infrastructure and industrial assets. Stonepeak and CMA CGM have completed the formation of United Ports, with Stonepeak investing $2.4 billion for a 25 percent stake. HIG acquired infrastructure services and engineering firm Avove, which specializes in regulated water and power markets. In the industrial space, AIP has completed the buyout of material handling firm Intelligrated from Honeywell Technologies. Wynnchurch plans to take industrial company Luxfer private for $17.37 per share. TransDigm is acquiring IGP-backed Prince & Izant for over $1 billion, a manufacturer of brazing alloys and specialty metal components.

Healthcare and life sciences remain attractive targets. Riverside-backed Decera invested in healthcare knowledge platform Onviv. Arlington Capital has exited its medical equipment company Riverpoint to Novanta in a $1.45 billion deal, with Arlington managing partner Matt Altman expressing confidence in the healthcare transaction environment. BC Partners has agreed to acquire a co-control stake in Info RLife, a Swiss CDMO specializing in ready-to-use IV infusion bags. Care Career has acquired Periscope Equity-backed MAS Medical Staffing, a travel nurse and allied staffing agency.

Fundraising, LP Sentiment, and Market Dynamics

Limited partners are exhibiting a preference for high-conviction deals and are re-evaluating their private equity exposure. Family office is tapping into secondaries markets to revamp its portfolio and is reducing its overall private equity exposure in favor of separately managed accounts, citing cost-efficiency benefits amid lower private equity returns. Secondaries investors, in general, favored high-conviction deals in the first half of the year, with AI disruption significantly impacting both LP-led and GP-led markets. One active European LP is specifically seeking out venture capital firms with strong "industrial know-how" for its investments.

In fundraising news are in talks for a £1 billion Scale-Up Fund. Visionaries has reduced its investment team to two lead partners for its next fund. Meanwhile, 9fin has completed its first employee share sale following a $170 million raise. The European unicorn exit landscape for 2026 is being closely watched.

Sector-Specific Investments and Strategic Partnerships

Specific sector investments highlight ongoing strategic interests. Golub Capital is backing fast-food chain Church’s Texas Chicken. FEP has acquired Australian Planet Fitness franchisee Bravo Fit, with Planet Fitness exiting its minority ownership. Mutares has agreed to acquire the Free2move car-sharing business from Stellantis, which operates across 14 cities in Europe and the US. In the energy sector, SVP is acquiring a minority stake in the power plant South Field Energy. ECP KKR have agreed to a $7.7 billion deal to acquire DCC Energy, a multi-energy sales and distribution business.

AE Industrial has appointed Leonard Dollaga as operating partner to identify new investment opportunities in national security sectors, particularly maritime. Capitol Meridian plans to invest in aviation services firm RH Aero Systems, with existing shareholders continuing as significant investors. Carlyle has made its debut investment from a new aerospace platform, as private equity-backed deals in wealth management continue to be robust. Electric’s VC is backing startups building technologies for the AI economy, viewing the AI buildout as creating a new industrial investment cycle.