Tracking application software bankruptcies; family office deal value on the rise

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

Bankruptcy data provides a window into the pressure building on application software companies in the age of AI.

Application software companies accounted for 15 of the 30 bankruptcy filings by privately held IT companies recorded in the US in 2025, according to S&P Global Market Intelligence data. By comparison, just two publicly listed IT companies filed for bankruptcy protection in 2025.

Growth rates have slowed and valuations have fallen for public and private companies across the sector in recent years, FTI Consulting Inc. Senior Managing Director Justin Eisenband told Market Intelligence. Recent advances in AI pose a further threat to the growth of the application software sector and the seat-based pricing models used by many businesses in the sector.

Weakening valuations may discourage private equity firms from investing additional capital in already struggling application software businesses, especially those with substantial existing debt.

Read more about bankruptcies among privately held application software companies and in the broader private IT sector in the US.

⮞ The value of direct investments by family offices rose to $12.9 billion globally in 2025, more than doubling the prior-year total, according to Market Intelligence data.

⮞ While family offices often invest alongside private equity funds, they are increasingly taking on direct investments alone or in partnership with other family offices, said Manju Jessa, vice president and head of family office and strategic clients for Royal Bank of Canada.

⮞ Family offices in North America backed $6.5 billion in direct investments, just over half the total deal value in 2025.

TOP DEALS

– KKR & Co. Inc. is making a $1.5 billion equity investment in communications infrastructure real estate investment trust Vertical Bridge REIT LLC. Barclays and Houlihan Lokey were financial advisers and Kirkland & Ellis LLP was legal counsel to KKR. Centerview Partners LLC was financial adviser to Vertical Bridge, and Simpson Thacher & Bartlett LLP was the REIT's legal adviser.

– Funds managed by Apollo Global Management Inc. affiliates agreed to take an about 13% minority stake in McKesson Corp.'s Medical Surgical Solutions LLC unit for $1.25 billion in convertible preferred equity. The transaction values the business at about $13 billion.

– H.I.G. Capital LLC reached a deal to sell contract research organization Celerion Holdings Inc. According to Axios Pro, affiliates of THL Partners funds will acquire a majority stake in Celerion for $1.8 billion. BofA Securities Inc. and Lazard Frères & Co. LLC were financial advisers to H.I.G. and Celerion. McDermott Will & Schulte LLP was legal adviser to H.I.G. and Celerion in connection with the deal.

TOP FUNDRAISING

– EQT AB (publ) held the final close for BPEA Private Equity Fund IX, reaching its hard cap at $15.6 billion. The fund's strategy targets control investments in Asia-Pacific companies operating in such areas as technology, healthcare, industrial technology and technology services.

– Adams Street Partners LLC closed on $2.5 billion in committed capital for Adams Street Co-Investment Fund VI, surpassing its target.

– Kinderhook Industries LLC secured $1.1 billion in capital commitments at the final close of Kinderhook Strategic Opportunities Fund I LP. The fund will execute a control-oriented investment strategy targeting lower-middle-market companies.

– Triple Private Equity Ltd. raised €513 million at the final close of its inaugural fund. Triple Private Equity Fund I SCSp seeks to invest in software and data business-to-business companies in the UK and Northern Europe.

– Baird Capital Partners raised $450 million for Baird Capital Global Fund III LP. The fund will make growth equity and buyout investments in lower-middle-market technology and services companies in the US and UK.

MIDDLE-MARKET HIGHLIGHTS

– Castlelake LP acquired a majority stake in Resfin Partners, the owner of US residential lending platforms Eastview and Lendmarq.

– Avem Partners completed the purchase of Precision Aircraft Machining Co. Inc., a manufacturer of components for the aerospace, defense and space sectors. True West Capital Partners invested equity as part of the transaction.

– Acorn Capital Management agreed to acquire a majority interest in MTI Aviation Inc., which provides repair, overhaul and parts distribution services.

FOCUS ON: EQT'S EVERGREEN FUNDS

EQT is expanding its evergreen fund offerings after recording strong momentum, executives said during the firm's first-quarter earnings call.

The Swedish private equity firm is set to launch an infrastructure-focused evergreen fund in the second quarter and another for private capital in the third quarter.

Net inflows to EQT's evergreen funds grew to €1 billion in the first quarter from about €200 million in the fourth quarter of 2024. Redemptions remained low at less than 0.5% in the first quarter.

However, recent concerns surrounding the health of private credit underscore risk.

"We would have had more than €1 billion in this quarter had we not had the private credit issue, so to speak. So we see it affecting the full market," said Gustav Segerberg, head of CEO office at EQT.

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