Dim exit outlook for software portfolio companies; utilities investment surges

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

For private equity fund managers guiding software portfolio companies, the path to a strong exit has grown much more complicated in just a few years.

More than 27% of active private equity portfolio companies in North America's software industry were businesses acquired at least five years ago as of April, according to With Intelligence's "Private Equity Harvest Report 2026." They are at or beyond the typical hold period for tech sector investments, suggesting their managers are preparing to exit.

The hurdle for a decent return on those investments has risen as software industry valuations have fallen. AI is posing new threats to an industry already experiencing a post-pandemic slowing of revenue growth.

An even tougher challenge may face the 11% of private equity portfolio companies in North America's software industry that have been held for at least seven years. Discussing AI vulnerabilities on a TPG Inc. earnings call in February, TPG Capital LP Co-managing Partner Nehal Raj said investments underwritten in 2018, 2019 and 2020 were "more susceptible to risk and disruption" from AI.

Read more about the exit outlook for private equity software investments.

CHART OF THE WEEK: Utility investment surges on rising data center energy demand

⮞ Private equity and venture capital investments in the utility sector totaled $69.52 billion globally in 2025, up about 51% from $46.10 billion in 2024, according to S&P Global Market Intelligence data.

⮞ Investment in 2026 is off to a fast start, with $64.59 billion invested across 44 deals in the first quarter alone.

⮞ Driving the activity is the data center industry’s expanding appetite for energy, which is expected to nearly double by 2030 as the industry grows to meet AI demand.

TOP DEALS

– Sentinel Capital Partners LLC agreed to sell electrical components manufacturer NSI Industries LLC to industrial company Hubbell Inc. for $3 billion. The transaction is expected to close in mid-2026. Lincoln International LLC was financial adviser to NSI Industries and Sentinel Capital Partners, and Kirkland & Ellis LLP was legal adviser. Harris Williams was financial adviser to Hubbell, and Wachtell Lipton Rosen & Katz was legal adviser.

– AI company Anthropic PBC is launching a new AI-native enterprise services firm through a $1.5 billion joint venture with Blackstone Inc., Hellman & Friedman LLC and Goldman Sachs Group Inc. Anthropic, Blackstone and Hellman & Friedman are each expected to invest roughly $300 million, The Wall Street Journal reported.

–The Carlyle Group Inc. acquired a majority stake in two revenue cycle management platforms, Knack RCM and EqualizeRCM Services, for an undisclosed amount.

– KKR & Co. Inc. and XPV Water Partners Inc. agreed to sell water technology company Axius Water Holdings LLC to CRH PLC. The transaction is expected to close in the second quarter.

TOP FUNDRAISING

– Thomas H. Lee Partners LP made the final close of THL Equity Fund X LP with $6.35 billion in investable capital. The fund will invest in middle-market companies across financial technology and services, healthcare, and technology and business solutions.

– Andreessen Horowitz LLC raised $2.2 billion for A16z crypto, its fifth dedicated venture capital fund for cryptocurrency. Fund V will focus on stablecoins, capital markets infrastructure and decentralized systems.

– Apis Partners Group (UK) Ltd. raised $1.23 billion in combined commitments at the final close of Apis Global Growth Fund III and Apis Growth Markets Fund III. The funds will invest in minority stakes in financial infrastructure and services businesses in Europe and select growth markets globally.

– Twin Bridge Capital Partners LLC closed its sixth lower-middle-market-focused fund, Pacific Street Fund VI LP, with more than $855 million in capital commitments. The fund was oversubscribed and exceeded its $800 million target. Fund VI will invest in lower-middle-market buyout funds targeting over $750 million in commitments and coinvestments.

MIDDLE-MARKET HIGHLIGHTS

– Platinum Equity LLC acquired electric heating manufacturer Infratech Corp. from entrepreneur Sam Longo Jr. and Infratech CEO John Mazzotta. Terms of the deal were not disclosed. Longo and Mazzotta retained equity stakes in the business. Raymond James & Associates was the financial adviser to Platinum Equity, and Willkie Farr & Gallagher LLP was the legal adviser. Lincoln International was Infratech's financial adviser, and Brette S. Simon Esq. was legal adviser.

– Boyne Capital Management LLC acquired commercial cleaning and facilities service company H&B Facility Services LLC. Terms of the deal were not disclosed.

– Columna Capital LLP agreed to buy a majority stake in Evidenze Group Europe SL, a Spain-based health research company, from Buenavista Equity Partners for an undisclosed amount. Columna Capital received financial advice from Deloitte and Lafferty and legal advice from Gómez-Acebo & Pombo. Buenavista Equity Partners and Evidenze received financial advice from Alantra and legal advice from Uría Menéndez and Broseta Abogados.

FOCUS ON: TPG'S PRIVATE CREDIT STRATEGY

TPG Inc. plans to launch a credit interval fund in 2027 as a response to client interest in diversified credit strategies.

"Given our attractive mix of credit strategies and strong performance, our clients have expressed interest in a TPG multi-strategy credit interval fund," TPG CEO Jon Winkelried said during the firm's first-quarter earnings call.

TPG sees strong growth in its credit portfolios, characterized by returns that match or exceed targeted ranges as well as low loss ratios.

Despite the elevated redemptions for some credit funds, TPG's credit portfolios are well insulated from broader industry concerns, given their low exposure to software, which is a factor in the appeal of the credit offering, Winkelried said.

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