Private Equity 3 Days

Last updated: August 15, 2026, 11:35 AM ET

Venture Capital & AI Investments

Joshua Kushner, co-founder of Thrive, has urged venture capitalists in Silicon Valley to maintain investment discipline amid the current AI euphoria, warning against allowing excitement to overshadow prudent evaluation. He emphasized that while the AI opportunity is substantial, a "grave error" would be to let enthusiasm compromise investment standards. This sentiment comes as AI continues to dominate funding rounds, with Databricks reportedly raising another $5 billion. Other significant funding rounds this past week included an AI neolab, data center and electricity storage solutions, and defense technologies. In parallel, Battery Ventures is backing Vetspire, an AI operating system for veterinary practices, aiming to accelerate product innovation and AI development. Furthermore, Thrive Holdings has secured $2 billion in new funding at a $12 billion valuation to bring AI to the enterprise, with backing from investors including SoftBank and D1 Capital Partners. OpenAI itself is reportedly involved with Mistral, as ASML, Amadeus, and others commit to backing its data center buildout.

Major Funding Rounds and Valuations

The private equity landscape continues to see significant capital deployment. EQT's EQT Scaleup Europe Fund has debuted with a €450 million investment in ICEYE, valuing the satellite operator at €10 billion. In another large transaction, CVC DIF is set to acquire firstcolo, a German data center operator, from Cube Infrastructure. This deal highlights the strong demand for AI infrastructure, which is driving momentum in the engineering sector. Meanwhile, Silver Lake and Digital Bridge are reportedly exploring an exit for Vantage Data Centers that could value the hyperscale operator at approximately $100 billion, considering either an IPO or a sale. In a notable move for the software industry, Silver Lake is also in talks to take Workday private in a deal that could be one of the largest software buyouts to date.

Deal Activity Across Sectors

Private equity firms are actively pursuing acquisitions across diverse sectors. Thoma Bravo is poised to acquire the specialty insurance risk exchange platform Accelerant for over $4 billion, with Altamont Capital Partners and Accelerant's founders retaining equity stakes. In a separate transaction, Astorg is acquiring Thermo Fisher Scientific's microbiology business for $1 billion, driven by demand for antimicrobial testing. Butterfly Equity, Graham Partners, and Wise Equity are also actively transacting with nutraceuticals assets. In the manufacturing sector, Shurco, backed by Behrman, has acquired Heavy Motions Inc. In the interior surfaces market, Charger-backed Wolf-Gordon has acquired two providers: Andor Willow and Walls & Interiors. Apax is set to sell its food supply chain logistics provider Tosca to Goldman Sachs Alternatives.

Financial Services and Lending Investments

The financial services sector is experiencing significant investment and strategic shifts. Bank of America has agreed to invest up to $1.9 billion for a stake of up to 49.9% in Jio Credit, the lending arm of Jio Financial Services. In the distressed debt market, private credit heavyweights including Pimco and Pollen Street are reportedly considering the acquisition of a €1.2 billion ($1.4 billion) non-performing loan package from Italy's BFF Bank. Meanwhile, TDR Capital is exploring the sale of Arrow Global, a private credit manager it previously took private. The Weymouth Retirement Board is seeking private equity co-investment managers as part of its investment strategy.

Market Trends and Investor Strategies

Investors are navigating evolving market dynamics, with a notable shift in strategy observed at Saudi Arabia's Public Investment Fund (PIF). PIF's new strategy for 2026-2030 emphasizes active ownership and increased involvement of private investors, moving away from rapid capital deployment. In contrast, La Caisse's private equity holdings experienced a 4.3% decline in the first half of 2026, significantly underperforming a benchmark that gained 8.0%. This performance divergence may reflect the broader market trend where AI-driven rallies are rewarding public markets more than private equity. Korea's NPS reported a 12% rise in its private equity assets under management, though overall growth momentum is slowing. The pension fund has also increased its exposure to secondaries, adding another $1 billion for a total of approximately $3.7 billion in secondary funds and co-investments. The SEC is intensifying its scrutiny of private funds' valuations, with examiners requesting specific fund details and enforcement actions picking up.

Geographic Expansion and Sector Focus

European venture capital is seeing geographic expansion, with UK spinout investor Northern Gritstone planning to open an office in San Francisco. The European fintech sector, however, is facing cultural challenges, as highlighted in a recent analysis. In the AI space, the Spanish startup Multiverse Computing is positioning itself as a potential European AI champion. London-based venture lab, focusing on deeptech solutions for environmental issues, is also gaining attention. In the construction sector, Sarah Buchner's Trunk Tools is leveraging AI to improve construction efficiency. The drone industry is also a focus for VCs, with a list of 10 drone startups to watch in 2026 identified.

Fundraising and Secondaries Market

The secondaries market continues to attract significant capital. New 2ND Capital is nearing a $1.25 billion close for its Fund IV, having already completed its first deal. Hollyport Capital has secured backing from Blue Owl, allowing it to remain independent, a move that reflects the industry's growth trajectory. The secondaries investor market is also seeing activity from large pension funds, with Korea's NPS adding $1 billion of exposure.

Corporate Acquisitions and Divestitures

Private equity continues to fuel corporate consolidation and divestitures. Providence Equity has agreed to acquire Hometrack, a property valuation data firm. In the healthcare sector, Marlin’s Radar Healthcare has completed an add-on acquisition of Cemplicity, a patient experience platform. WestBridge is set to acquire a majority stake in Beckett Investment Management, a financial planning firm, from Foresight Group. Optimum Energy, backed by Bernhard, has acquired Hussung Mechanical Contractors and HMC Service Company. In the industrial wastewater treatment sector, Astara Capital has acquired Dynatec. RF Investment Partners has invested in drilling company RJ Underground. Braemont Capital is investing in the consulting firm Thought Logic. Reverence Capital has backed Sunstar in its acquisition of insurance agency RJR Faribo. In a merger, Granite Creek-backed DCG has merged with digital and tech firm Urban Emu.

Fundraising and Startup Activity

The venture capital ecosystem continues to see substantial fundraising activity, with Crunchbase News reporting that 40 companies joined the Unicorn Board in July, the highest count in four years. Sectors leading this surge include financial services, robotics, AI orchestration, multimodal AI, energy, and semiconductors. In a significant development for biotech, EQT Life Sciences is investing $17.5 million in Vaderis Therapeutics as part of a $152 million Series B round. The broader private equity market is also seeing interest in new themes, with investors increasingly focusing on local economy themes.

Technology and Infrastructure Deals

The technology and infrastructure sectors are experiencing robust deal flow. ASML, Amadeus and other major players are committing to backing Mistral's data center buildout. In the artificial intelligence infrastructure space, Index is reportedly in talks to lead a $500 million round for a new AI lab founded by a former Deep Mind researcher. In a move to bolster quality and compliance, Resurgens Technology Partners is investing in Qarma, an AI-powered quality and compliance software provider. The tech sector has also seen significant job cuts, with over 127,000 workers at U.S.-based tech companies laid off in 2025, and these layoffs have continued into 2026.

Private Market Valuations and SEC Scrutiny

Private markets are under increased scrutiny regarding their valuations. The SEC is actively examining private funds' valuations, with examiners requesting specific fund information. This heightened attention from regulators may be influenced by the performance disparities observed, such as La Caisse's private equity portfolio lagging public markets.

Private Equity Portfolio Performance

Performance within private equity portfolios shows a divergence. While some sectors and funds are thriving, others are experiencing declines. La Caisse's private equity holdings saw a 4.3% loss in the first half of 2026. Conversely, Korea's NPS reported a 12% increase in its private equity assets under management.

Investor Interest in Retirement Market

Blackstone is exploring a broader push into the U.S. retirement market, considering the integration of private markets into target-date funds and managed accounts. This strategy aims to leverage the benefits of private markets for retirement plans with long investment horizons.

European Public Funds Activity

Europe's public funds are actively engaged in the market, with a list of the 30 most active funds in the first half of 2026 identified.

London's Startup Ecosystem

London's startup and venture capital scene remains vibrant, with a focus on events for founders and VCs, including meetups.