Latest Notable Developments in the Private Equity Sector This Week
In the world of finance, two significant events have taken place recently. On one hand, European opportunistic real estate fundraising is experiencing a robust rebound, with record-breaking capital inflows. On the other hand, KKR is close to acquiring the consumer healthcare group Karo Healthcare in a deal valued at more than €2.5bn.
The recovery in European opportunistic real estate fundraising is evident, as private real estate fundraising secured over US$110 billion in commitments in the first half of 2025, marking a 16% year-on-year increase. This growth has been heavily influenced by large, record-breaking capital raises from major managers like Blackstone. Specifically, Blackstone Europe Real Estate Partners VII contributed substantially, as part of Blackstone’s two mega-fund closes raising nearly $20 billion across vehicles in H1 2025.
The rally in fundraising signals improved market sentiment driven by more favorable financing conditions in Europe, including easing monetary policy, better access to capital, and increased liquidity. These factors have boosted investor appetite for opportunistic real estate opportunities. Moreover, this trend coincides with broader industry consolidation and the strategic expansion of private real estate players, positioning them strongly for the next real estate cycle upswing.
Meanwhile, in the consumer healthcare sector, KKR is set to expand its portfolio with the acquisition of Karo Healthcare. The sale of Karo Healthcare to KKR would mark a significant exit for EQT, which has owned the company since 2019. The transaction was initiated by EQT last year, and KKR reportedly outbid several rival private equity firms during the sale process. The acquisition would give KKR exposure to resilient, cash-generating consumer health assets.
In a separate development, EQT sold a €3bn stake in enterprise software leader IFS. The sale brought in the Abu Dhabi Investment Authority (ADIA) and Canada Pension Plan Investment Board (CPPIB) as new investors. Additionally, technology investor Hg will increase its stake in IFS and become a co-controlling shareholder alongside EQT. The company was valued at €15bn in the transaction.
It's important to note that TA Associates will remain an investor in the business IFS, but is not mentioned as being involved in the acquisition of Karo Healthcare by KKR. EQT is not a part of the new investment in Karo Healthcare after the sale either.
These events underscore the dynamic nature of the European investment landscape, with opportunities arising in various sectors and the continued growth of private equity and real estate fundraising.
[1] Source: Preqin [2] Source: Real Estate Capital Europe
- The European opportunistic real estate fundraising has seen a remarkable rebound with capital inflows exceeding US$110 billion, marking a 16% year-on-year increase.
- This growth in fundraising is heavily influenced by private equity firms like Blackstone, which raised nearly $20 billion in H1 2025.
- The private equity firm KKR is close to acquiring Karo Healthcare in a €2.5bn deal, which would serve as a significant exit for EQT.
- KKR reportedly outbid several rival private equity firms during the sale process, expanding its portfolio with resilient consumer health assets.
- In a separate transaction, EQT sold a €3bn stake in IFS, bringing in Abu Dhabi Investment Authority (ADIA) and Canada Pension Plan Investment Board (CPPIB) as new investors.
- TA Associates remains an investor in the business IFS but is not involved in the acquisition of Karo Healthcare by KKR.
- The dynamic nature of the European investment landscape continues to grow, offering opportunities in a variety of sectors and the expansion of private equity and real-estate fundraising.
