Risks shade private credit outlook in Europe; more but smaller carve-out deals

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

Europe is a region to watch as pressure mounts on private credit.

Investors committed a record $69.92 billion to Europe-focused private credit funds in 2025, up more than 29% from $53.94 billion in 2024, according to data from With Intelligence. Fund managers described a growing pipeline of lending opportunities as European governments stepped up spending on infrastructure projects and defense.

Those fundamentals have not shifted. But war in the Middle East is pushing up energy costs in Europe and slowing growth across major economies, which could make it harder for private credit borrowers to keep up with payments.

That is just one piece of the evolving global risk backdrop for private credit. Withdrawal requests from retail funds rose in the first quarter as concerns grew around credit quality.

Read more about how rising global risks have tempered the outlook for private credit in Europe.

CHART OF THE WEEK: Carve-out deal activity accelerated in 2025

⮞ The volume of private equity carve-outs globally increased about 10% to 421 deals in 2025 from 384 deals in 2024, rising for a second consecutive year, according to S&P Global Market Intelligence data.

⮞ The total value of carve-outs decreased, however, falling about 13% to $65.24 billion in 2025 from $75.04 billion in 2024.

⮞ The combination of falling transaction value and rising deal volume indicates private equity carve-outs are "broadening beyond a handful of megadeals," said Andrew Wright, private equity M&A and advisory leader at Deloitte & Touche LLP.

TOP DEALS

– Leonard Green & Partners LP and other investors agreed to sell Jetro Cash & Carry LLC, the owner of wholesale foodservice distributor Jetro Restaurant Depot, to Sysco Corp. for approximately $29.1 billion in cash and stock. Goldman Sachs & Co. LLC and TD Securities were financial advisers to Sysco, while Paul Weiss Rifkind Wharton & Garrison LLP and Jones Day were Sysco's legal advisers. Evercore advised Jetro, with Wachtell Lipton Rosen & Katz and Macfarlanes LLP serving as legal advisers. J.P. Morgan Securities LLC and Latham & Watkins LLP advised Leonard Green. Edelman Smithfield and Foxcroft Strategy Group LLC are strategic communications advisers to Sysco and Jetro, respectively.

– The Carlyle Group Inc. agreed to buy a majority stake in MAI Capital Management LLC, valuing the registered investment adviser at more than $2.8 billion. The transaction is expected to close in the second quarter.

– Blackstone Inc., alongside Colony Investment Management, agreed to acquire Accor SA's 30.56% stake in Luxembourg-based hotel owner Essendi SA for up to €975 million. The deal consideration comprises €675 million payable at closing and an earnout of up to €300 million, with closing expected in the third quarter and Essendi's portfolio to be progressively converted to 20‑year franchise contracts under Accor brands. The expected completion of the transaction is the third quarter.

– KKR & Co. Inc. agreed to take Japan-based electronic materials and pharmaceutical company Taiyo Holdings Co. Ltd. private through a tender offer. The proposed price will be ¥4,750 per common share, representing a 117.2% premium to Taiyo's six-month average unaffected closing price as of May 27, 2025.

TOP FUNDRAISING

– KKR reached final close for KKR North America Fund XIV, with capital commitments of approximately $23 billion. The fund's strategy is to pursue opportunistic private equity investments in North America. Commitments were sourced from a global investor base that includes pension plans, sovereign wealth funds and insurance companies. Debevoise & Plimpton LLP represented KKR as primary fund counsel for the fundraise.

– Blackstone raised $6.3 billion for Blackstone Life Sciences VI LP at final close. The fund is nearly 40% larger than its predecessor fund.

– Inflexion Private Equity Partners LLP held the final close for Inflexion Buyout Fund VII at its €4.5 billion hard cap, surpassing its initial target of €3.75 billion. The fund will acquire majority stakes in midmarket companies across Northern Europe.

– Nippon Sangyo Suishin Kiko Ltd. (NSSK) secured ¥250 billion for its NSSK Series IV Funds at final close. The fund was more than 2x oversubscribed and was substantially allocated within four months of launch. The fund will continue NSSK's control-oriented buyout strategy in Japan's middle market, targeting businesses with strong cash flow and niche market positions, with an emphasis on buy-and-build strategies. Investors included sovereign wealth funds, pension funds, financial institutions and family offices. Thrive Alternatives advised NSSK on the fundraising.

– Apogem Capital LLC secured $1.43 billion at the final close of Apogem Secondary Fund VII LP. The fund pursues general partner-led and limited partner secondary transactions across the North American middle market.

– Fremman Capital raised €853 million at the final close of its Fremman II MM fund and associated managed accounts. The fund will focus on buyouts in the middle market.

MIDDLE-MARKET HIGHLIGHTS

– TruArc Partners LP acquired adhesive and sealant manufacturer Matrix Adhesives Group LLC from Goldner Hawn LP. Chemlink Partners was financial adviser and Davis Polk & Wardwell LLP was legal adviser to TruArc on the deal. Houlihan Lokey and BMO Capital Markets were financial advisers to Matrix Adhesives.

– Axcel Management A/S agreed to buy Geomatikk AS, a Norway-based software company focused on mapping and excavation activity, from HgCapital LLP.

– Inflexion agreed to purchase Marioff Corp. Oy, a Finland-based provider of fire suppression solutions, in a deal with Sentinel Capital Partners LLC. J.P. Morgan and Citi were the financial advisers to Sentinel, and Kirkland & Ellis was legal adviser.

FOCUS ON: CARLYLE DEALS IN JAPAN

In March, Carlyle made several investments in Japan, where financing conditions are conducive for dealmaking and the country's conglomerates present carve-out opportunities.

On March 30, Carlyle unveiled plans to acquire the device and module solutions business of Omron Corp. Earlier in the month, the firm agreed to buy scaffolding rental operator Sugiko Co. Ltd. from Orix Corp. and completed the privatization of healthcare supplies company Hogy Medical Co. Ltd.

Between January 2020 and March 2026, Carlyle made 14 investments in Japan, four of which were announced in 2025, while two were announced in the first quarter of 2026, according to Market Intelligence data. Median deal value between 2020 and 2026 to date stood at $243.2 million.

"Ongoing governance reforms and balance sheet optimization by Japanese corporates have continued to unlock carve-outs and opportunities to take companies private," consultancy firm Bain & Co. said in its Asia-Pacific Private Equity Report 2026, adding that strong historical returns and favorable financing conditions enabled large-scale transactions.

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For further private equity deals, read our latest "In Play" report, which looks at potential private equity-backed M&A, including rumored transactions, each week.

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