Private equity deal volume contracts in Q1 2026; GenAI funding rounds set record

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

A global geopolitical outlook clouded by war and trade tensions may have held back private equity dealmaking in the first quarter.

There were 614 private equity M&A deals globally in the first quarter, down about 22% year over year from 785 deals, according to S&P Global Market Intelligence data. Conversely, the aggregate deal value increased year over year, rising 12.6% to US$154.64 billion in the first quarter from US$137.31 billion.

Uncertainty in the economic forecast is putting pressure on corporate valuations and making it harder to get deals done, Linklaters LLP partner Florent Mazeron told Market Intelligence.

Private equity and venture capital investments via rounds of funding were also down, though the diagnosis for the decline was different. The number of funding rounds fell 9.5% to 3,778 globally in the first quarter, compared with 4,174 rounds in the year-ago period.

Uncertainty may have a role, but venture capital markets are also feeling the outsize influence of "a concentrated number of very large artificial intelligence rounds, which makes monthly data more volatile," Kaiti Delaney, a principal at Ten Eleven Ventures LLC, told Market Intelligence.

Read more about private equity and venture capital M&A activity in the first quarter and rounds of funding in March.

CHART OF THE WEEK: Record-setting quarter for GenAI venture funding

⮞ Generative AI companies attracted a record US$145 billion in venture capital funding in the first quarter, according to Market Intelligence data.

⮞ Two megadeals accounted for nearly 98% of that total: a US$122 billion round announced by OpenAI LLC in late February and a US$20 billion round for X.AI LLC in January.

⮞ The record-setting quarter might be hard to top as existing players eye public markets for future growth and new entrants struggle to differentiate themselves from established GenAI foundation models.

TOP DEALS

– Ares Management Corp. agreed to buy open-air retail real estate investment trust Whitestone REIT in an all-cash deal valued at approximately US$1.7 billion. The transaction is expected to close in the third quarter. BofA Securities is Whitestone's financial adviser and provided a fairness opinion to its board of trustees. Jones Lang LaSalle Securities is also a financial adviser. Bass Berry & Sims is Whitestone's legal adviser. Citigroup Global Markets Inc. is the lead financial adviser and financing provider, Morgan Stanley & Co. LLC is a financial adviser, and Kirkland & Ellis LLP is legal adviser to Ares.

– Francisco Partners Management LP agreed to acquire Blackline Safety Corp. in a deal valuing the Canadian wearable safety-device maker at up to C$850 million. The deal is expected to close in the second quarter. RBC Capital Markets is financial adviser, and Stikeman Elliott LLP and Kirkland & Ellis LLP are legal advisers to Francisco Partners. Burnet Duckworth & Palmer LLP is legal adviser to Blackline. Assisting the Blackline board's special committee are Canaccord Genuity Corp. as financial adviser, CIBC Capital Markets as independent valuator and Torys LLP as legal adviser. Other advisers on the deal include BDT & MSD Partners, Osler Hoskin & Harcourt LLP and Blake Cassels & Graydon LLP.

– Blackstone Inc. and TPG Global LLC completed their acquisition of medical imaging equipment manufacturer Hologic Inc. The transaction includes minority investments from sovereign wealth funds Abu Dhabi Investment Authority and GIC Pte. Ltd.

TOP FUNDRAISING

– Court Square Capital Management LP raised US$3.8 billion in capital commitments at the close of Court Square Capital Partners V LP. The vehicle seeks to make control buyouts in business services, healthcare, industrial and technology companies. Kirkland & Ellis LLP was the legal counsel to Court Square, and Raymond James Private Capital Advisory and HMC Global were placement agents.

– ArcLight Capital Partners LLC secured US$3.9 billion in commitments at the close of ArcLight Infrastructure Partners Fund VIII. The vehicle will focus on power, renewables, storage, transmission, midstream and digital infrastructure. Kirkland & Ellis LLP was legal counsel to the fund.

– Jeito Capital SA held the final close for Jeito II SLP at US$1.2 billion. The fund will invest in 15 to 20 clinical-stage biopharmaceutical companies.

– L Catterton Management Ltd. is raising US$1.5 billion across multiple Asia-focused private equity funds and has secured over US$1 billion so far, With Intelligence reported. The fundraising includes a flagship pan-Asia fund targeting US$400 million, as well as additional funds focused on India, China and Japan.

MIDDLE-MARKET HIGHLIGHTS

– Beecken Petty O'Keefe & Co. LLC sold surgical systems company Midwest Products and Engineering Inc. to Graham Partners Inc. Robert W. Baird & Co. was Midwest's financial adviser on the deal, while Kirkland & Ellis LLP was legal adviser.

– Frontenac Co. LLC added roadside assistance provider Honk Technologies Inc. to its portfolio.

– MPE Mgt. Co. LLC and its portfolio company, SKB, acquired Canadian protective-case maker Nanuk Gear Protection Inc. PwC Corporate Finance was the financial adviser and BCF was legal adviser to the shareholders of Nanuk. Stikeman Elliott and Jones Day were legal advisers to MPE on the deal. Apogem Capital provided financing for the transaction.

FOCUS ON: PRIVATE EQUITY ENTRIES IN INDIA

Private equity and venture capital investment in India climbed to US$7.19 billion in the first quarter from US$4.57 billion in the same period a year earlier, according to Market Intelligence data. The number of deals grew to 296 from 291.

The median deal value in the first quarter was US$3.8 million, slightly higher than US$3 million in the first three months of 2025.

Private equity investment in India is expected to accelerate in 2026, supported by strong structural fundamentals, a narrowing bid-ask spread and a deepening corporate ecosystem, EY said in a report.

However, tariff revisions, depreciation of the Indian rupee, the war in the Middle East and other risks could put pressure on the pace of investment.

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