Tower Brook is “extremely bullish” on opportunities for H2 and the foreseeable future despite elevated leverage and AI‑driven disruption weighing on wider industry returns, said managing director Joseph Knoll. He emphasized a disciplined, thesis‑driven approach focused on underwriting alpha at entry, deep sector expertise, and operational transformation rather than changing strategy. The strongest opportunities continue to be in business, financial and healthcare services where AI meaningfully improves productivity and customer outcomes, alongside the consumer vertical where AI offers a great cost‑to‑serve opportunity.\n\nTower Brook’s recent deals include the acquisition of French sports platform ID Unlimited and MSA Mizar from Columna Capital.

Over the last two years, approximately 79 percent of exits have been strategic sales versus 21 percent to financial buyers, exemplified by the sale of Car Trawler to Expedia. The 2025 PE industry DPI ran materially below long‑term averages, and average exit uplifts have compressed versus the prior decade, leading to longer holding periods and a realization‑versus‑valuation gap that remains the industry’s defining challenge.\n\nLooking ahead, Knoll expects a market characterized by selective clearing rather than a broad‑based recovery, with macro‑economic and geopolitical uncertainty continuing to weigh on confidence, financing, and exit timing through 2026. Operational execution, not market beta, will determine exits and returns, requiring businesses to be transformed faster than ever before.

The firm underwrites the most likely exit path—usually a strategic buyer—before entry, focusing on “must‑have” mid‑cap assets while recognizing that large‑cap “must‑haves” remain fragile amid IPO uncertainty.