Latest Fundraising Developments in the Private Equity Sector
In the realm of private equity, a discernible shift is underway, characterised by a flight-to-quality with more selectivity, a growing focus on the middle market, and the increasing use of continuation vehicles and secondary funds to generate liquidity amid a slower exit environment. This transformation is highlighted by recent fund launches.
Corsair Capital, for instance, has closed a $600m continuation vehicle and secondary fund, the Corsair Riva, L.P., which will focus on co-investments and secondaries in the lower middle market. The fund will anchor high-performing European financial services assets from multiple Corsair funds, with Corsair retaining ownership of three strategically positioned portfolio companies through the continuation fund.
Morgan Stanley Investment Management has also entered the scene with the North Haven Private Assets Fund, its first evergreen private equity fund. Structured for individual investors seeking private equity exposure with enhanced liquidity, the North Haven Private Assets Fund is designed to focus on co-investments and secondaries in the lower middle market.
Meanwhile, Mérieux Equity Partners has reached the first close of its €150m Mérieux Innovation 2 (MI2) fund. The fund aims to back around 15 EU-based ventures, focusing on diagnostics, therapeutics, medtech, and pharma services. Initial investments for Mérieux Innovation 2 (MI2) will typically be around €6m, with the potential for follow-on investments to rise to €15m. The MI2 fund continues MxEP's strategy of investing in early-stage healthcare companies.
The deal was led by secondaries specialist Coller Capital.
Apollo Global Management has also raised $5.4bn for its first secondaries fund, S3 Equity and Hybrid Solutions.
On the other side of the continent, Provectus SEE Fund II is a €200m private equity vehicle managed by Croatian firm Provectus Capital Partners (PCP). Provectus SEE Fund II focuses on providing equity and equity-related capital to small and medium-sized enterprises across Southeast Europe. The European Bank for Reconstruction and Development (EBRD) is considering a €25m ($28m) equity investment in Provectus SEE Fund II.
This strategic pivot towards specialized, resilient assets and innovative fund structures in a more cautious capital environment is a response to broader trends. Fundraising totals have significantly declined from their 2022 peak, indicating limited new fund launches with investors focusing on quality over quantity. However, there is tentative momentum and hope for stronger performance in the second half of the year, supported by buyout sponsors preparing for new fund launches and seeking liquidity.
Managers are increasingly prioritizing the middle market, which offers structural advantages such as greater flexibility, informational asymmetry, and opportunities for creative deal-making. This is evident in funds like Morgan Stanley’s North Haven Private Assets Fund and aligns with broader industry trends emphasizing middle-market strategies as core to private equity ecosystem resilience and differentiated returns.
Furthermore, funds such as Mérieux Equity Partners’ MI2 fund highlight private equity’s ongoing pivot towards sector-specific, innovation-driven, and regionally targeted strategies, reflecting investors’ desire for resilient, growth-oriented niches.
Leverage levels have crept up post-April trade tariff announcements, though direct lenders remain cautious. Valuations face pressure, particularly in infrastructure due to rising interest rates, but energy and other real asset investments are rebounding, supporting certain valuations.
Deal activity remains strong, especially in the middle market and infrastructure sectors. Add-on acquisitions prevail, reflecting cautious but steady deployment of capital.
In summary, the recent fund launches demonstrate a strategy of selective, quality-focused private equity investing, emphasizing liquidity solutions (continuation vehicles/secondaries), middle market engagement, innovation and sector specialization, and resilience amid macroeconomic and geopolitical uncertainties. This aligns with broader 2025 trends of cautious capital allocation, pressure on exits, and a market environment favouring creative fund structures and targeted growth opportunities.
- Corsair Capital has closed a $600m continuation vehicle and secondary fund, the Corsair Riva, L.P., which will focus on co-investments and secondaries in the lower middle market.
- Morgan Stanley Investment Management has entered the scene with the North Haven Private Assets Fund, a first evergreen private equity fund, designed to focus on co-investments and secondaries in the lower middle market.
- Mérieux Equity Partners has reached the first close of its €150m Mérieux Innovation 2 (MI2) fund, aiming to back around 15 EU-based ventures, focusing on diagnostics, therapeutics, medtech, and pharma services.
- Apollo Global Management has raised $5.4bn for its first secondaries fund, S3 Equity and Hybrid Solutions.
- Provectus SEE Fund II, a €200m private equity vehicle managed by Croatian firm Provectus Capital Partners (PCP), focuses on providing equity and equity-related capital to small and medium-sized enterprises across Southeast Europe.
- Fundraising totals have significantly declined from their 2022 peak, indicating limited new fund launches with investors focusing on quality over quantity.
- This strategic pivot towards specialized, resilient assets and innovative fund structures in a more cautious capital environment is a response to broader trends, aligning with the 2025 trends of cautious capital allocation, pressure on exits, and a market environment favouring creative fund structures and targeted growth opportunities.
