Coinvestments rise with megadeals; top pension fund exposure to private equity

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

The value of coinvestments between private equity and institutional investors has soared in 2026, largely because of huge deals that involve AI companies.

Coinvestments reached $198.19 billion between Jan. 1 and June 30, more than the full-year totals recorded in five out of the last six years and on track to surpass the $253.01 billion recorded in 2025, according to S&P Global Market Intelligence data.

Supersize funding rounds for AI — such as Anthropic's $65 billion financing round announced in April, which included participation from asset managers and sovereign wealth funds — have been central to the trend.

Beyond the headline AI deals, the growth reflects closer alignment between private equity and institutional investors. Limited partners (LPs) value coinvestments for a lighter fee burden versus committing to full fund investments, while fund managers use coinvestments to expand deal size beyond fund limitations.

Fundraising also plays a role. "[Fund managers] certainly recognize that by offering coinvestments, it may make some LPs more disposed to being an LP in their fund as well," said Steven Hartt, leader of private equity services at LP advisory Meketa Investment Group Inc.

Read more about private equity coinvestments.

CHART OF THE WEEK: Top 20 pension funds with largest private equity allocation

⮞ Overall, the 20 pensions with the largest allocation to private equity have a collective exposure totaling $757.50 billion, according to data from With Intelligence.

⮞ The Canada Pension Plan Investment Board and California Public Employees' Retirement System hold the largest amount of actual investment in private equity among global pension funds, with over $100 billion each.

⮞ Distributions to paid-in capital have been low amid slow exits and secondaries are becoming "a core portfolio management tool," allowing pensions to generate DPI within their own portfolios, said Tracy Gallagher, head of investment strategy at digital investment platform Allocate.

TOP DEALS

– Blackstone Energy Transition Partners agreed to acquire Dresser Utility Solutions, a US-based provider of natural gas and water measurement, control and infrastructure equipment solutions, from First Reserve Management LP. D.A. Davidson & Co. and Jefferies were financial advisers and Kirkland & Ellis was legal adviser to Blackstone on the deal. Harris Williams was financial adviser and Simpson Thacher & Bartlett was legal adviser to Dresser.

– EQT AB (publ)'s EQT X fund agreed to buy Corza Medical Inc.'s biosurgery business. Corza Biosurgery manufactures the surgical patch, TachoSil. GTCR LLC will continue to own Corza Medical and its wound closure, ophthalmology and biomedical textiles business segments. The transaction is expected to close in the fourth quarter. Piper Sandler was financial adviser to EQT and Latham & Watkins LLP was legal adviser. Citi and Moelis & Co. are financial advisers and Kirkland & Ellis LLP is legal adviser to Corza Medical.

– Summit Partners LP led a more than $1 billion strategic growth investment in identity management company Keyfactor Inc. Existing investors Insight Venture Management LLC (Insight Partners) and Sixth Street Growth will keep significant ownership. Piper Sandler was Summit Partners' financial adviser and Qatalyst Partners was Keyfactor's financial adviser. Evercore was financial adviser to Insight Partners.

TOP FUNDRAISING

– Arctos Partners LP raised $6.2 billion at the final close of its inaugural growth capital fund, exceeding its $4 billion target. Arctos Keystone Partners Fund I LP seeks to provide growth capital to alternative asset managers. Evercore Private Funds Group was the global placement agent for the Keystone Fund I raise and Kirkland & Ellis LLP was legal counsel to Arctos.

– CVC Capital Partners PLC brought in about €3 billion for CVC Capital Partners Catalyst III at final close. The fund targets equity investments of less than €250 million in midmarket businesses across Europe.

– Serent Capital Management Co. LLC secured $1.3 billion in commitments at the close of Serent Capital VI LP. The firm invests in software and technology-enabled services companies.

– Bregal Milestone LLP raised €915 million at the final close of its Bregal Milestone III SCSp fund. The fund focuses on software, AI and cybersecurity businesses in Europe. Evercore Private Funds Group was global placement agent and Goodwin Procter was legal counsel to Bregal.

– Regal Healthcare Capital Partners held the final close for its fourth fund with $610 million in commitments, exceeding its $550 million target. Regal Healthcare Capital Partners IV LP focuses on lower-middle-market healthcare services companies. Lazard was the placement agent for the fundraise and Kirkland & Ellis was legal counsel to Regal.

MIDDLE-MARKET HIGHLIGHTS

– Bruin Capital Holdings LLC agreed to sell sports technology company Full Swing Golf Holdings Inc. to Versant Media Group Inc. for about $530 million in cash. Gibson Dunn was Versant's legal adviser. Moelis & Co. LLC was Bruin's financial adviser and Kirkland & Ellis LLP was legal counsel.

– H.I.G. Capital LLC agreed to buy a majority stake in Germany-based civil engineering company Terras Holding GmbH. Terras co-founders Dirk and Ralf Sojka will reinvest in the company alongside H.I.G.

– Shore Capital Partners LLC added employee benefits technology platform ThrivePass Inc. to its portfolio. Harris Williams was ThrivePass' financial adviser in connection with the transaction.

– Argosy Capital Group LLC acquired a controlling stake in third-party logistics company K&L Freight Management LLC.

FOCUS ON: H1 2026 PRIVATE EQUITY DEALS