Last updated: March 19, 2026, 4:30 PM ET
Secondaries Market Activity & Fund Structures
The secondaries market continues to see complex maneuvering, evidenced by QHP Capital closing an $1.1 billion continuation fund for Azurity Pharmaceuticals, a transaction led by Harbour Vest Partners with participation from Pantheon Ventures. This move follows a trend where secondaries players themselves are acting as methodical sellers over the last 15 months, distinguishing themselves from typical LPs through a disciplined divestment approach. Concurrently, Bindley Capital-backed Guardian Pharmacy Services priced a “synthetic secondary” offering, demonstrating alternative liquidity tools outside traditional LP sales. In Europe, Ares leading a €300 million single-asset continuation vehicle for premium frozen baked goods company Europastry underscores continued GP appetite for managing assets without full realization, while Ares also led fundraising for two mid-market CVs, including one for nursery operator Kids Planet exceeding £400 million.
Exits and Portfolio Company Transactions
Private equity firms are actively exploring major exits, with CVC Capital Partners and Nordic Capital examining options for Cary Group that could yield an enterprise valuation surpassing €3 billion. In other realization activity, Permira is preparing to exit its stake in AltamarCAM to Mercer, the global private markets investment firm managing €20 billion in assets. Meanwhile, portfolio company activity remains brisk: Blackstone-backed healthcare advisor Chartis scooped up health tech firm Leap AI, and in the life sciences sector, B-Flexion Life Sciences portfolio companies Paratek and Radius Health merged, supported by a $1.3 billion financing advised by Mintz. Further industrial consolidation saw Sterling acquire managed IT services provider Cyber Advisors, expanding its reach across small, mid, and enterprise clients.
Sector Focus: Healthcare, Infrastructure, and Climate Tech
Infrastructure and regulated industries are attracting considerable capital, highlighted by LS Power’s agreement to purchase 4.4 gigawatts of natural gas generation capacity from Constellation Energy for $5 billion. In healthcare technology, Index Ventures participating in Parallel’s $20 million Series A aims to deploy AI agents within hospital systems, while Blackstone-backed Chartis’s acquisition of Leap AI signals a focus on data analytics within advisory services. Climate technology also secured backing, with BNP Paribas Asset Management Alts investing in FarmCarbon to scale methane reduction efforts in agriculture. Furthermore, ICG is backing railway maintenance firm Comcreta to capitalize on accelerating investment in Italy’s rail infrastructure.
Venture Capital Momentum and Talent Shifts
Venture funding continues to flow into specialized technology, as seen by Bluesky securing $100 million in Series B funding following a CEO transition, with capital earmarked for scaling the team and developing the ATProto platform. Two former Palantir veterans launching stealth startup Edra secured $30 million backed by Sequoia, intending to automate workflows using operational data. In Europe, venture interest remains strong in regulated sectors; Verdane and Bpifrance backing French telehealth provider Medadom follows Medadom’s accreditation from the French Ministry of Health. However, the sector faces talent retention challenges, as a new survey suggests one in five UK founders plan to relocate abroad within the next year, contrasting with the focus on domestic growth seen in the UK’s ‘Revenuemaxxing’ startups sifting for rapid expansion.
LP Strategy, GP Governance, and Tax Planning
Investor appetite for direct co-investment remains high, despite some high-profile institutions pivoting away from direct mandates, suggesting that LPs are not universally withdrawing from direct exposure. On the governance front, firms are exploring sophisticated wealth management strategies, including guidance on gifting carried interest early for estate planning, allowing future appreciation to accrue outside the General Partner’s estate for tax efficiency. Meanwhile, the secondaries market is adapting its focus; Houlihan Lokey notes that technology is descending the list of favored continuation vehicle sectors as managers react to market disruption, potentially boosting interest in other areas. Separately, HighVista Strategies appointed Raudel Yanez to lead its GP-led secondaries investing strategy, specifically targeting the lower middle market.