PitchBook

New state oversight laws are slowing private equity's ability to acquire healthcare assets, causing a decline in both the number and value of such deals compared to previous years. The report attributes this slowdown to increased state scrutiny, with multiple states passing or proposing laws that restrict how private equity can operate or gain control over medical practices.

New state laws are reportedly slowing private equity’s ability to acquire healthcare companies, leading to a decline in both the number and value of deals compared to previous years. Pitchbook data suggests that increased state oversight from states like California, Oregon, and Rhode Island is restricting how private equity can operate or consolidate medical practices.

Private equity faces a 'zombie company problem,' with PitchBook estimating about $860 billion in zombified net asset value across U.S. PE funds that are over seven years old. This issue is driven by the accumulation of companies, including over 4,500 firms held for five or more years, which theoretically should have been exited. The problem emerged during the zero-interest-rate-policy (ZIRP) era when cheap debt fueled a buyout boom.

Physical AI startups raised a record $16.3 billion across 492 deals in Q1 2026, fueling interest beyond traditional software. Business Insider surveyed multiple investors and venture partners to compile a list of 25 promising robotics startups for 2026. The listed companies include those developing general-purpose AI brains and humanoids for various industrial applications.

The viability of private equity compared to public markets has shifted due to higher interest rates and peak valuations from 2020 and 2021, making debt-financed buyouts harder. University of Chicago Booth professor Steven Kaplan notes this reversal in pattern since 2019, while PitchBook reports that the backlog of companies held by private equity firms is now over 33,000.

The UK market for initial public offerings is experiencing a slump, which is negatively affecting private equity and venture capital firms. As a result, these investment groups have fewer exit routes and are increasing their dependence on selling assets to large corporates or other buyout shops to generate returns, according to PitchBook data.

Sports teams are transitioning from being seen as trophy assets to serious investment targets, with private equity deals in the sector growing significantly from 13 deals worth $1.9 billion in 2014 to 71 deals valued at $18.45 billion by 2025. Major leagues like MLB, NBA, NHL, and NFL have relaxed institutional ownership rules, enabling valuations such as the Miami Dolphins at $8 billion and the Los Angeles Lakers at $10 billion.

Bots now generate over 50% of web traffic, with agentic AI activity growing 7,851% year-over-year. CloudFlare and Thales report conflicting crossover points for bot-human traffic dominance, while HUMAN Security highlights shifts in AI-driven traffic composition. The internet’s business model, built on human-centric metrics, faces disruption as bots reshape web activity and monetization.

The global mergers and acquisitions market increased by 42% in the first half of the year, reaching $2.9 trillion, with France also experiencing this growth. Companies are proceeding despite geopolitical tensions.

James Murdoch invested $120 million in SpaceX before its IPO, which could now be worth up to $7.5 billion according to Pitchbook estimates. The investment was made through Lupa Systems and personal purchases revealed in a Tesla-related court case. His father, Rupert Murdoch, had previously questioned his ability to succeed independently.

U.S. venture capitalists deployed a record $412.7 billion in the first half of 2026, with 86% of funds directed to AI deals and 91% allocated to deals of $100 million or more. SpaceX dominated exit value, accounting for nearly all $2.2 trillion in liquidity through its IPO and related ventures.

Defense tech has shifted from a contentious niche in Silicon Valley to a booming investment area, with startups like Anduril, Saronic, and Shield AI securing high valuations. Venture capital funding for defense tech surged to $19.8 billion in Q1 2026, raising concerns about a potential bubble, as acknowledged by Anduril CEO Brian Schimpf.

VC investment in quantum computing reached $3.9 billion in 2025, driven by major players like BlackRock, Nvidia, and Temasek. Companies such as Quantinuum and PsiQuantum secured significant funding, while global governments, including China, have allocated over $60 billion to quantum initiatives. The sector remains speculative, with practical quantum breakthroughs expected by the end of the decade.

Steve Case argues that America's entrepreneurial spirit is key to maintaining its competitive edge, emphasizing the need to expand opportunities beyond concentrated tech hubs like New York, Massachusetts, and California. He highlights companies such as Tempus, Hermeus, CAVA, and Anduril as examples of innovation in overlooked cities, supported by Revolution’s Rise of the Rest initiative.

Venture capitalist Nisha Dua highlights the increasing difficulty for emerging managers to raise funds as capital consolidates around established firms. She advises focusing on a clear thesis and positioning, citing BBG Ventures' success with diverse founders and early investments in companies like Spring Health and Starface.

SpaceX is set to go public with a valuation between $1.5 trillion and $2 trillion, potentially joined by OpenAI and Anthropic in a combined $5 trillion market event. However, only 20% of active venture capitalists (700 out of 3,500–4,000) are invested in these companies, meaning 80% will not benefit from the liquidity. Industry experts note the event may not rescue venture capital as a whole due to the concentrated access of top-tier investors.

NATO tested counter-drone technologies at a range in Latvia, showcasing mixed results from European startups like Eraser and Nordic Air Defense. The demonstrations highlighted challenges in reliably intercepting drones, driven by urgent threats from Ukraine and Russia's drone warfare, while emphasizing the need for cost-effective solutions.

Tech private equity has slowed down significantly with only $9.3 billion of global tech buyout value in April and May 2026 combined, compared to $52.6 billion in March alone. The market is paralyzed by AI-driven uncertainties and a sudden draining of private credit market liquidity. This slowdown may continue until the market digests more quarters of data.