Private Equity 8 Hours

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

European Private Equity & Dealmaking Headwinds

Dealmaking sentiment in Europe faces complexity as geopolitical tensions complicate defense valuations, according to advisors at Houlihan Lokey. This environment was evident as EQT’s third formal offer for Intertek, the testing and certification giant, was reportedly rejected by the board, signaling a gap between bidder expectations and seller price targets. Separately, the focus on niche sectors is growing, with European venture funds mapping over 70 companies in the defense technology space, seeking areas insulated from broader macroeconomic pressures. Meanwhile, AI integration presents a specific challenge, as current tools are not adequately designed for Europe’s trades sector, suggesting a future opportunity for specialized software investment.

Venture Capital & Fund Formation

New capital formation continues despite market uncertainty, with Arāya Sie Fund achieving a £7.5m first close dedicated exclusively to backing women-led technology startups, an initiative framed as a counterpoint to the recent "tech bro renaissance." In the fintech arena, Revolut’s new bets division thrives by embracing a philosophy of "pivoting, fighting and hustling," illustrating the operational agility required for growth units within large digital banks. Across the Pacific, Australian superannuation funds may soon face structural changes, as reforms under consideration could benchmark total fund returns rather than measuring performance by separate asset classes, potentially driving greater adoption of Total Portfolio Approach (TPA) strategies among large institutional asset owners.