S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
More than half of pension funds globally have more money invested in private equity than they had planned.
Pension fund overallocation has been an ongoing story, as the slow pace of private equity exits results in lower-than-expected distributions back to investors, who then decrease capital commitments to maintain target allocation percentages.
Overallocation results in part from "the anemic distribution environment," said Sheila Ryan, partner in investment manager Cambridge Associates LLC's pension practice.
The top 10 overallocated pension funds combined have gone over target by $37.8 billion. The converse — the top 10 underallocated pension funds — shows $32.7 billion short of target.
Liquidity has become a critical issue, and some pension funds have turned to the secondary markets to sell their investment stakes. The value of secondary market deals so far this year is on track to exceed the total value recorded in 2024.
Overallocation indicates operational challenges. When large pension funds do not receive enough capital back from exits, they become hesitant to invest in new funds, which hampers new private equity deals.
Opinions are split on how the liquidity situation will play out in the second half of the year. Hopeful signs that a window for IPO exits is opening after the successful Circle Internet Group Inc. listing in June and the possibility of an interest-rate cut are offset by the uncertain direction of trade policy and tariff implementation.
Read more about pension funds' actual versus target allocations.
CHART OF THE WEEK: Half-year private equity deal value
⮞ Global private equity and venture capital deal value grew 18.7% year over year to $386.42 billion in the first half of 2025, according to S&P Global Market Intelligence data. The number of deals, however, fell 6% to 6,188 transactions.
⮞ Larger transactions that are fewer in number are a result of pressure on private equity to invest some of the $2.5 trillion in capital they have raised but not deployed, according to Simon Grimshaw, partner for corporate and finance at Hogan Lovells.
⮞ Grimshaw said the economic impact of tariffs will remain a headwind for private equity deals in the second half.
TOP DEALS
– TPG Capital LP finalized the acquisition of Sabre Corp.'s hospitality software business for $1.1 billion. The transaction includes a strategic minority investment from hotel operator MCR Investors LLC.
– CVC Capital Partners PLC led a $220 million investment in Singapore-based embedded SIM card provider Airalo. Existing investors Peak XV Partners Operations LLC and Antler Innovation Pte. Ltd.-managed fund Antler Elevate participated in the investment.
– GTCR LLC made a majority investment in real estate analytics company ClearCapital.com Inc.
– Partners Group Holding AG agreed to buy a majority stake in nonbank lender Infinity Fincorp Solutions Pvt. Ltd. for 19.5 billion Indian rupees.
TOP FUNDRAISING
– One Rock Capital Partners LLC raised $3.97 billion for One Rock Capital Partners IV LP and middle-market vehicle One Rock Emerald Fund LP at final close.
– Levine Leichtman Capital Partners LLC secured more than $3.6 billion at the final close of Levine Leichtman Capital Partners VII LP. The vehicle will invest in middle-market businesses.
– Tikehau Capital raised more than €1 billion for a private equity continuation fund dedicated to its portfolio company, Egis SA, which provides architectural services.
– Zenyth Advisors LLC closed its second flagship fund with $375 million in capital commitments. Zenyth Partners II LP invests in healthcare services companies.
– Saothair Capital Partners LLC closed on $300 million for its second fund, Saothair Fund II LP, which targets manufacturing companies.
MIDDLE-MARKET HIGHLIGHTS
– Nautic Partners LLC purchased clamp and bracket products company Ideal Tridon Group from TruArc Partners LP. MidCap Financial Services LLC led the financing for the deal. Guggenheim Securities LLC, McDermott Will & Emery LLP and Simpson Thacher & Bartlett LLP advised Nautic Partners, while Lincoln International, Harris Williams and Weil Gotshal & Manges LLP advised TruArc.
– Liberty Hall Capital Partners LP bought Paxia Inc. from Teleo Capital Management LLC, which retains a minority stake in the in-flight catering software company. Houlihan Lokey Inc. was Liberty Hall's financial adviser, while Gibson Dunn & Crutcher LLP was legal counsel. O'Melveny & Myers LLP was the sell-side legal counsel.
– Oak Hill Capital Management LLC and Pamlico Capital Management LP made a strategic investment in internet service provider Socket Telecom LLC. Houlihan Lokey was the financial adviser and Brown Law was legal counsel to Socket Telecom. Paul Weiss Rifkind Wharton & Garrison LLP and Alston & Bird provided legal counsel to Oak Hill and Pamlico.
FOCUS ON: INVESTMENTS IN THE GULF
Abu Dhabi, United Arab Emirates-based BlueFive Capital raised $2 billion at the close of BlueFive Reef Private Equity Fund I.
The fund will invest primarily in healthcare, technology, hospitality, aviation and industrial businesses across the Gulf Cooperation Council region, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
Private equity and venture capital investment in the six countries totaled $1.77 billion during the first six months of 2025, Market Intelligence data shows. The figure represents 37% of the total deal value in the Middle East, which amounts to $4.78 billion.
The largest private equity-backed deals in the region during the first half include RRJ Capital and Andalusian Private Capital LP's $600 million investment in Vista Global Holding Ltd. and Lunate's $255.8 million acquisition of a stake in ADNOC Gas Pipeline Assets LLC.
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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.
For private credit news, see our latest private credit newsletter, issued twice per month.
