Private Equity 8 Hours

Last updated: May 5, 2026, 8:30 AM ET

Deal Flow & Exits

Exits are beginning to accelerate, evidenced by KKR and XPV Water Partners divesting Axius Water to CRH, a firm specializing in nutrient management solutions since its 2019 formation. This move coincides with THL Partners agreeing to sell AMI to Lattice Semiconductor for $1.65bn, with the transaction anticipated to finalize in the third quarter of 2026. Meanwhile, Copley Equity is testing the market for LJB, a civil and structural engineering firm, with bids potentially valuing the target at 12x to 14x EBITDA, suggesting strong metrics remain attractive despite broader economic caution.

Mid-Market Transactions & Sector Bets

Activity across the mid-market shows a focus on specialized industrial and technology assets. In the industrial space, Allied Industrial’s portfolio company, Liberty Waste Solutions, acquired Randolph County Garbage Services to expand its integrated waste solutions footprint in North Carolina. Elsewhere, Columna Capital is acquiring Evidenze Group from Buenavista Equity Partners, absorbing the pan-European outsourced pharmaceutical services platform. Further specialized investment saw Bregal Milestone injecting growth capital into Meteoviva, a firm providing AI-driven management systems for building energy optimization, while CapMan Infra secured a majority stake in Nordic operator HeliAir Sweden.

European Tech & Growth Equity Moves

Growth equity continues to target software and specialized services, exemplified by Baird Capital closing a single-asset continuation vehicle for life sciences consultancy Blue Matter. In Southern Europe, PAI Partners and Fondo Italiano d’Investimento are jointly acquiring Mecaer Aviation Group, an Italian industrial group focused on flight-critical systems. On the exits front, Long Path Partners successfully completed the take-private of UK software provider Idox. Additionally, CataCap-backed Thranekær purchased engineering consultancy Ingeniørgruppen, broadening its professional services profile in areas like civil engineering and utilities.

Secondaries Sentiment & Market Dynamics

Sentiment in the secondaries market suggests managers are recalibrating expectations, moving past initial denial, as analyzed in Secondaries Investor’s inaugural Global Market Survey. This shift is reflected in converging fee terms, where the focus is now on 'best practice terms' rather than merely closing transactions, according to a recent analysis from Morgan Lewis. This focus on quality metrics comes as some observers suggest the continuation vehicle (CV) market has moved through the "five stages of grief," according to a recent PE International briefing.

Venture Capital and AI Funding Environment

Despite private equity transaction caution, venture funding demonstrated significant strength in April, reaching $56bn globally, making it the third-largest monthly figure in the last year and representing a 100% year-over-year increase, largely due to mega-rounds in artificial intelligence. This AI investment trend is visible at the startup level, where firms like Lithosquare raised $25m to develop AI for critical metal discovery. Furthermore, European startup investors remain confident that local firms can successfully navigate forthcoming AI disruption, even as new AI-enabled professional services firms emerge, such as the AI-supercharged law firm being built by a Y Combinator alum.

M&A Hurdles and Operational Realities

While deal volume remains active, the threat of deal failure before execution persists, often stemming from fundamental misalignment between sellers’ price expectations and the practical realities of M&A processes, a common pitfall detailed by strategic adviser Itay Sagie. Separately, the broader technology ecosystem continues to foster unique talent pools, with attention drawn to the internal "founder factory" culture developed by Europe’s fintech giant Revolut, juxtaposed against persistent internal issues such as the hidden gender gap present in startup hiring.