Private equity in China's semiconductor sector; US biotech rounds drop

S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.

China, a global hub of semiconductor manufacturing, absorbed more than half of all private equity and venture capital investment in semiconductors in 2025.

Private equity- and venture capital-backed transactions targeting China's semiconductor sector totaled $7.71 billion in 2025, according to S&P Global Market Intelligence data. That was equivalent to about 58% of the $13.35 billion private equity invested in the semiconductor sector globally.

Private equity investors are going where the action is. China accounted for half of the global semiconductor fabrication capacity added in recent years, said Thomas Kirschstein, a partner at consultancy Roland Berger LLC.

On a global basis, annual private equity and venture capital investment in the semiconductor sector declined 45% year over year in 2025. But that was due in part to a 2024 megadeal that skewed the prior-year totals: Apollo Global Management Inc.'s more than $11 billion acquisition of a stake in Intel Ireland Ltd.'s chip factory.

Read more about the decline in private equity investment in semiconductors in 2025.

CHART OF THE WEEK: US biotech rounds fall to 5-year low

⮞ Venture capital-backed funding rounds in US biotechnology companies totaled 237 in 2025, down more than 25% from 317 in 2024 and the lowest total in at least five years, according to Market Intelligence data.

⮞ Transaction value also fell, declining about 8% to $13.34 billion in 2025 from $14.53 billion in 2024.

⮞ Federal policies, including attempts to target drug pricing and cuts to National Institutes of Health funding, are changing the risk calculation for venture capital investors, said Rathanesh Ramasundram, an industry expert with consulting firm Frost & Sullivan.

TOP DEALS

– Monomoy Capital Management LP agreed to acquire automobile service center chain Jiffy Lube International Inc. from Pennzoil-Quaker State Co., a unit of Shell PLC's US business, for approximately $1.3 billion. The transaction is expected to close by the second half of 2026. RBC Capital Markets was the financial adviser to Monomoy, while Kirkland & Ellis LLP was the private equity firm's legal adviser. Golub Capital will be the administrative agent and joint lead arranger on the deal's financing. Ares Credit funds and MidCap Financial are also the joint lead arrangers on the financing.

– The Carlyle Group Inc. agreed to sell Colombian oil and gas exploration and production company SierraCol Energy Ltd. to Philippines-based Prime Infrastructure Capital Inc. The deal is expected to close in the first quarter. BofA Securities was lead financial adviser and Latham & Watkins LLP was legal adviser to Carlyle.

– Blackstone Energy Transition Partners agreed to buy a majority stake in Advanced Cooling Technologies Inc., which provides thermal management solutions for applications such as data centers, space and defense, in a deal expected to close in the second quarter. Houlihan Lokey was Advanced Cooling's financial adviser, while Reed Smith was its legal counsel. UBS was financial adviser and Kirkland & Ellis was legal adviser to Blackstone.

– TPG Inc. closed the sale of its stake in Intersect Power LLC, which was acquired by Alphabet Inc. unit Google LLC for $4.75 billion. As part of the deal, TPG, Google, Climate Adaptive Infrastructure and Greenbelt Capital Management LP spun off Intersect's grid-tied power business to create an independent company called IPX Power.

TOP FUNDRAISING

– General Catalyst Group Management LLC seeks to raise $3 billion for its General Catalyst Fund XIII – Creation fund, With Intelligence reported. The fund plans to make venture investments in early-stage companies.

– Truelink Capital Management LLC raised $2 billion at the close of Truelink Capital Fund II LP. The fund will invest in industrial and business services companies. William Blair & Co. was placement agent and financial adviser for the fundraise, while Kirkland & Ellis was legal adviser.

– Levine Leichtman Capital Partners LLC aims to raise $1.7 billion for LLCP Lower Middle Market Fund IV, With Intelligence reported. The fund targets North America-based small and midmarket buyouts.

– Glade Brook Capital Partners LLC closed Glade Brook Gondola Fund I with over $1 billion in capital commitments. The fund was launched to acquire and manage growth equity assets from the Glade Brook Strategic Growth III fund. Jefferies, Morgan Stanley and Kirkland & Ellis advised Glade Brook on the Gondola Fund process.

MIDDLE-MARKET HIGHLIGHTS

– Siris Capital Group LLC agreed to take a majority stake in Takkion Holdings LLC, a service provider to the renewable energy industry, from fund affiliates of Apollo. TD Securities and Wells Fargo were financial advisers and Sidley Austin was legal adviser to Siris on the deal. Harris Williams was financial adviser and Vinson & Elkins LLP was legal adviser to the Apollo funds.

– Ridgewood Infrastructure LLC purchased a controlling stake in California-based Sierra Northern Railway LLC for an undisclosed sum. Ridgewood was advised by King & Spalding and Truist Securities. Sierra was advised by Northborne Partners LLC. Brookfield Infrastructure Credit provided debt financing for the deal.

– Greenbelt Capital Management LP agreed to buy maintenance and repair services company Peak Utility Services Group from Orix Capital Partners. Harris Williams was financial adviser and Kirkland & Ellis was legal adviser to Greenbelt on the deal. Stifel was Orix's financial adviser, while Reed Smith provided legal counsel.

FOCUS ON: LOUISIANA PENSION FUND'S PRIVATE MARKET ALLOCATION

The Louisiana State Employees' Retirement System (Lasers) is looking at increasing its target allocation for private markets to $750 million in 2026, With Intelligence reported.

In 2025, the pension fund set a $650 million target for private markets but committed a total of $625 million.

Lasers allocates 21.7% of its portfolio to private equity, private credit and real assets, lower than its 25% target, as of December 2025, according to the report.

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With Intelligence is a part of S&P Global Market Intelligence.