We are pleased to share the latest edition of our Quarterly Overview which provides you with updates and analysis on current private equity market trends, as well as information regarding investment activity within Sagard Private Equity's programmes.
Our activity in Q3 was defined by depth of relationships rather than volume. Highlights include a re-up commitment to Iron Path Capital Fund II, which closed at its hard cap roughly 2x oversubscribed, and primary commitments to Advent Partners 4 in Australia and Avallon MBO Fund IV in Poland, the latter marking 25 years of backing the manager. We also closed a continuation-vehicle investment in Project Sirius, Advent’s Australian diagnostic imaging platform. Year to date, Sagard Private Equity Strategies have distributed over USD 1.3 billion to investors against USD 1.0 billion called, returning more capital than we draw, despite the difficult exit environment (as end of 30/09/2026 - Source: Sagard). Further information on our transactions in Q3 2026 can be found below.
Private equity activity moderated in Q3 2026, following a Q2 that saw the strongest exit quarter since 2021. Global deal value eased about 6% YoY to $294.6B on 12% fewer deals, while exit value was flat year on year at $139.2B, nearly a third below Q2. The number of exits was also flat at 565. Trade sales (53%) and secondary buyouts (37%) accounted for most exits, though IPOs picked up to 25 from nine a year earlier. Regional paths diverged: Asia-Pacific deal value more than doubled, Europe rose 4% to $109.0B, and North America fell 32% to $122.4B. In our view, this points to a market where regional dispersion and a still-difficult exit environment matter more than any broad recovery.
Can investing later in a company’s ownership journey help LPs access growth while bringing distributions forward? Sagard Private Equity’s PJ Frederix and Jeff Reals explore why the mid-market offers fertile ground for mid-life capital — and how disciplined investors distinguish a genuine opportunity to accelerate value creation from a business simply seeking more funding. Read their perspectives on the potential benefits, trade-offs and execution capabilities that matter.
Sagard Private Equity highlighted four transactions in Q3 2026, spanning primary commitments and a continuation vehicle secondary, with activity across North America, Australia and Central & Eastern Europe.
On the primaries side, the quarter included a re-up commitment to Iron Path Capital Fund II — a lower middle-market industrials specialist that closed 2x oversubscribed at its hard cap — alongside inaugural commitments to Advent Partners 4 in Australia and Avallon MBO Fund IV in Poland. Each reflects Sagard's focus on managers with differentiated sourcing, repeatable value-creation toolkits, and strong alignment. Avallon marks 25 years as a Sagard GP relationship.
Project Sirius, one of the quarter's secondary transactions, extended Sagard's Advent Partners 4 commitment into the GP's single-asset continuation vehicle — an Australian diagnostic imaging platform. The investment captures structural growth in a defensive healthcare sub-sector and underscores Sagard's ability to build conviction across multiple instrument types with the same GP partner.
Re-up primary commitment to Iron Path Capital Fund II, which closed at its hard cap of USD 425 million — approximately 2x oversubscribed — with Sagard receiving its full allocation and an LPAC seat. Iron Path targets control investments in lower middle-market, technically specialised businesses across specialty chemicals, engineered products and technical services in North America, applying a proprietary thematic sourcing approach and in-house operating team.
Primary commitment to Advent Partners 4, managed by a Melbourne-headquartered lower mid-market buyout manager focused on Australia and New Zealand. The investment thesis centres on experienced and stable leadership, differentiated bilateral and founder-led sourcing, and a repeatable operational value-creation toolkit. Sagard has tracked and built this GP relationship since 2020, including a parallel commitment to the manager's single-asset continuation vehicle.
Primary commitment to Avallon MBO Fund IV, managed by a Poland-based value investor specialising in management buyouts across Central and Eastern Europe. The investment case highlighted a differentiated MBO-focused strategy, short investment period, strong GP alignment and preferred co-investment access. Sagard has backed Avallon since its founding 25 years ago.
Secondary investment into Advent Partners' single-asset continuation vehicle for Project Sirius, with a total commitment of approximately AUD 72m / EUR 43.5m. Sirius is a premium, doctor-led diagnostic imaging platform with leading positions across South Australia and Victoria. The investment case highlighted attractive valuation, structural market growth of 7% CAGR, strong GP and doctor alignment, and a clear value-creation roadmap including new clinic openings, M&A and technology synergies.
Private equity activity slowed moderately in Q3 2026, with deal value easing around 6% YoY to $294.6B and exit value flat at $139.2B. Valuations recovered, but pricing remains selective. Deal count fell 12% while average deal size rose 17%, pointing to larger transactions - a trend we have observed for several quarters. Asia-Pacific led regional growth as North America softened.
Eurozone mid-market valuations edged higher in Q2 2026, with the Argos Index rising 2.3% to 8.8× EBITDA. Investment funds paid a median 10.2×, compared with 7.9× for strategic buyers, reflecting differences in sector exposure and asset selection. Beneath this recovery, pricing remained uneven: 27% of transactions were completed below 7× EBITDA, while just 5% exceeded 15×. In our view, this dispersion reinforces the importance of disciplined underwriting and company-specific assessment.
27% of transactions below 7× EBITDA
Source: Argos Index® as of Q2 2026, Argos Fund / Epsilon Research. Index multiples are medians measured on a six-month rolling basis.
Global deal activity declined in Q3 2026, with 2,185 deals compared to 2,497 in Q3 2025, and deal value fell 6% to $294.6B from $315.0B compared to Q3 2025. North America led with 1,154 deals valued at $122.4B, down 32% YoY. Europe recorded 665 deals at $109.0B (+4% YoY), while Asia-Pacific recorded 366 deals at $63.2B, more than doubling YoY.
Share of deal value
Aggregate exit value was flat YoY at $139.2B (from $139.3B), though 31% below Q2's $203.2B. The number of exits was also flat at 565, against 564 in Q3 2025. Trade sales remained the leading exit route, followed by secondary buyouts. Twenty-five IPOs were completed, versus nine a year earlier.
Share of exits by count
Q3 2026 saw 337 VC exits globally ($134.6B), up 111% by value YoY from Q3 2025 ($63.9B, 326 exits), though 43% below Q2. In Venture as well, trade sales dominated the exit landscape. Secondary buyouts of VC-backed companies lowered marginally from Q3 2025.
Share of VC exits
Secondary buyouts remained the second most common exit route in Q3 2026, with 210 transactions, or 37% of all exits. This compares with 216 (38%) in Q3 2025.
Share of exits by count
Q3 2026 deal value was concentrated by sector. Telecoms & Media, Financial Services and Consumer together accounted for roughly half of the global sector total, with activity clustered in a small number of subsectors within each.
Telecoms and media led at $51.3B, with media contributing roughly 36% of value and telecoms 55%. Media activity centred on digital platforms and content, while telecoms deals focused on network infrastructure such as fibre, towers and data centres. A small number of very large transactions shaped the sector total.
Financial services reached $37.8B, with US targets making up 58% of value. Activity centred on asset and investment management, advisory and insurance, with insurance businesses contributing around 26% of the sector total. Insurance distribution, life and reinsurance featured prominently.
Consumer deal value reached $33.1B, with consumer products contributing 31%, led by beauty and hygiene products. Food, travel and leisure and food made up much of the remainder. US targets represented 37% and UK 10% of sector value.
As exits remain slow and alternatives grow scarce in the mid-market, mid-life capital has evolved from emergency valve into strategic engine. PJ Frederix and Jeff Reals, Co-Heads of Direct Investments at Sagard Private Equity, on what LPs need to understand.
Mid-life capital has become a structural feature of private equity, not a cyclical workaround. LPs should understand it as an independent, differentiated return stream with a distinct risk–return profile.
Mid-life capital is both a response to today’s environment and structurally important in its own right. By 2024, buyout distributions as a share of NAV had fallen to their lowest level in more than a decade, leaving a growing pool of mature, well-run businesses being held for longer than originally planned. Mid-life capital gives sponsors a way to continue backing those businesses without being forced into a suboptimal exit. But this isn't a patch on a broken market — even in a normalised exit environment, managers would still want a tool that lets them fund their best assets on their own timeline. Mid-life capital is now a proactive instrument for compounding value, not an emergency valve.
They do — but they have more tools to address it. Larger managers can access continuation vehicles, NAV facilities, and structured credit at scale. In the mid-market, those options either become too expensive or aren't viable: continuation vehicles require significant transaction sizes and syndication that rarely make sense for mid-market assets. The capital need is identical — funding M&A, accelerating organic growth, simplifying ownership — but the solution set is narrower. Mid-life capital fills that gap. And because fewer investors are set up to operate at this level of transaction complexity relative to deal size, there is a natural premium for those who can.
The structure looks familiar, but the underwriting is fundamentally different. In a traditional co-investment, you are largely investing alongside a manager's thesis and their diligence. In a mid-life transaction, you cannot rely on inherited underwriting — you need your own independent view on valuation, full third-party diligence, and bespoke governance terms. That's closer to leading a buyout than passively co-investing. The risk–return profile also differs: because you are investing into a business with one to three years of operating history, you have meaningfully more visibility than at entry, shorter holding periods, and earlier distributions. Absolute return potential may be somewhat lower than longer-duration primary investments. We view that as a deliberate and attractive trade-off.
That distinction is everything. The deals we want are acceleration investments — businesses at a clear inflection point where additional capital can create meaningfully more value than simply waiting. Three characteristics tend to recur: a high-quality, proven business with stable earnings and a manager that knows the asset intimately; a specific, executable value-creation catalyst that can move equity value materially within less than three years; and bespoke structuring — preferred equity or liquidation preferences — that creates greater risk management alongside meaningful upside participation. The diligence process and the quality of the manager relationship are what allow you to make that distinction confidently.
We see it as a genuine complement to traditional co-investment exposure. The shorter duration and earlier distributions can meaningfully improve the DPI profile of a direct co-investment programme over time, and the greater visibility into underlying assets means it behaves differently in a portfolio. As for what to watch: the market is still maturing, which means quality dispersion is high. The key question for any investor evaluating this space is whether the manager has the infrastructure to conduct independent, buyout-grade diligence, or whether they are effectively relying on the sponsor. The former is a differentiated capability; the latter is repackaged co-investment risk. Investors should also distinguish acceleration capital from situations where a manager is looking for a lifeline — the diligence process and structuring discipline matter enormously.
For professional investors only.
Our team will be present at the key industry forums and investor conferences this summer and fall. We look forward to connecting with GPs, LPs, and allocators across Europe and North America.
A mid-life opportunity is like being able to bet on the winning horse mid-race – and your capital may actually improve the outcome. Our speakers explore why mid-life transactions have moved from a niche tool to a core feature of private equity portfolio management: not a temporary response to liquidity challenges, but a shift in how private equity can preserve momentum, protect alignment and manage timing — and why we believe mid-life capital may become one of the most exciting growth trends in the asset class.
We are delighted to offer two versions of this webinar. Our English version, which took place on October 29 is available by request only, please see the details below. You may still register below for the German version on November 12.
To find out more, please get in touch: clientservice@sagard.com
A practical workshop for LPs considering portfolio rebalancing: how the LP-stake market is evolving, when selling can make sense, how an LP sale works from start to finish, and how secondary buyers assess portfolios and price transactions.
To find out more or to take part, please get in touch: clientservice@sagard.com
“Investing alongside a GP: mid-life opportunities in the mid-market.” A breakfast discussion on mid-life opportunities — more visibility on the asset, a shorter investment horizon and potentially faster distributions. Our team shares what more than 20 mid-life transactions in five years, seven of them in the last 18 months, have taught us. 8:30–10:30 a.m. CET, Mandarin Oriental Paris, 251 Rue Saint-Honoré.
Dr. Ralf Gleisberg and Philipp Scheier, Partners Private Equity, on the rise of semi-liquid evergreen funds and on “Mid-Life Opportunities” — faster cash returns at lower risk? Welcome by Dr. Florian Rehm, Head of Germany & Austria. From 11:00 a.m., lunch served during the presentations. Hotel Taschenbergpalais Kempinski, Taschenberg 3.
Dr. Ralf Gleisberg and Philipp Scheier, Partners Private Equity, on the rise of semi-liquid evergreen funds and on “Mid-Life Opportunities” — faster cash returns at lower risk? Welcome by Dr. Florian Rehm, Head of Germany & Austria. From 11:00 a.m., lunch served during the presentations. Taj Hessischer Hof, Friedrich-Ebert-Anlage 40.
“Mid-Life Opportunities – The Unfair Advantage.” PJ Frederix, Co-Head of Direct Investments, and Paul Newsome, Head of Investment Solutions, on the rise of mid-life deals — and why it signals a shift in how private equity can preserve momentum, protect alignment and manage timing. 9:00–11:00 a.m. GMT, breakfast served. Mandarin Oriental Mayfair, 22 Hanover Square.
Reach out to us: clientservice@sagard.com
Over the third quarter our team was active across the global private-markets calendar — hosting and attending events across North America, Europe and Asia, from our Private Equity Summer Update in Düsseldorf to annual meetings for our investors.




| Event | Country | City | When |
|---|---|---|---|
| Magog golf | Canada | Magog | 01–03 Sep 2026 |
| IPEM Global (incl. Emerging Manager Summit, 9 Sep) | France | Paris | 08–10 Sep 2026 |
| 2026 European Private Equity Research Symposium | Germany | Munich | 10–11 Sep 2026 |
| Sagard PE Summer Update & Drinks | Germany | Düsseldorf | 16 Sep 2026 |
| PEM Virtual AGM | Virtual | — | 17 Sep 2026 |
| CAIS | Baird Evident | — | — | Sep 2026 |
| BEX Webinar | Virtual | — | 22 Sep 2026 |
| BEX AGM | — | — | 24 Sep 2026 |
| DACH Private Equity Insights | Germany | Munich | 26 Sep 2026 |
| Singapore networking event | Singapore | Singapore | Sep 2026 |
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Specifically, the Fund will not be subject to a public offering in Peru. The Fund described herein have not been and will not be approved by or registered with the Peruvian Superintendency of Capital Markets (Superintendencia del Mercado de Valores, or the "SMV") or the Lima Stock Exchange (Bolsa de Valores de Lima). Accordingly, the Fund may not be offered or sold in Peru except, among others, if such offering is considered a private offer under the securities laws and regulations of Peru. The Fund cannot be offered or sold in Peru or in any other jurisdiction except in compliance with the securities laws thereof. In making an investment decision, institutional investors (as defined by Peruvian law) must rely on their own examination of the terms of the offering of the Fund to determine their ability to invest in the Fund. This Presentation and the information contained herein has been made available in accordance with the restrictions and/or limitations implemented by any applicable laws and regulations. This Presentation is directed at and intended for institutional investors (as such term is defined in each jurisdiction in which the Fund is marketed). This Presentation is provided on a confidential basis for informational purposes only and may not be reproduced in any form. Before acting on any information in this Presentation, prospective investors should inform themselves of and observe all applicable laws, rules and regulations of any relevant jurisdictions and obtain independent advice if required. This Presentation is for the use of the named addressee only and should not be given, forwarded or shown to any other person (other than employees, agents or consultants in connection with the addressee's consideration thereof).
The offering of interests in the Fund has not been approved or licensed by the Kuwait Capital Markets Authority or any other relevant licensing authorities in the state of Kuwait, and accordingly does not constitute a public offer in the state of Kuwait in accordance with law no. 7 for 2010 regarding the establishment of the Capital Markets Authority and the regulating securities activities ("CMA law"). This pitch book is strictly private and confidential and is being issued to a limited number of professional investors: Who meet the criteria of a professional client by nature as defined in article 2-6 of module 8 of the executive regulations no. 72 of 2015 of the CMA law; Upon their request and confirmation that they understand that the interests have not been approved or licensed by or registered with the Kuwait Capital Markets Authority or any other relevant licensing authorities or governmental agencies in the state of Kuwait; and must not be provided to any person other than the original recipient, and may not be reproduced or used for any other purposes whatsoever.
This pitch book relates to a fund which is not subject to any form of regulation or approval by the Financial Services Regulatory Authority ("FSRA") nor Dubai Financial Services Authority ("DFSA"). This pitch book is intended for distribution only to persons of a type specified in the FSRA's and/or DFSA's rules (i.e. "Professional clients") and, therefore, must not be delivered to, or relied on by, any other type of person. This pitch book is for the exclusive use of the persons to whom it is addressed and in connection with the subject matter contained therein. The FSRA and/or DFSA has no responsibility for reviewing or verifying any pitch book or other documents in connection with this fund. Accordingly, the FSRA and/or DFSA has not approved this pitch book or any other associated documents nor taken any steps to verify the information set out in this pitch book, and has no responsibility for it. The interests to which this pitch book relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers should conduct their own due diligence on the interests. If you do not understand the contents of this document you should consult an authorized financial adviser. Sagard (MENA) Ltd., an affiliate of Sagard, is regulated by the ADGM Financial Services Regulatory Authority (the "FSRA"). To the extent this material is made available to Sagard (MENA) Ltd., the financial products or services to which this material relates will only be made available to Professional Clients or Market Counterparties as such terms are defined by the FSRA and no other person should act upon it.
As per the rules stated in UAE Securities and Commodities Authority ("SCA") Decision No. (13) of 2021 on the Regulations Manual of the Financial Activities and Status Regularization Mechanisms Rule Book ("SCA Rule Book") and SCA Decision No. (04/RM) of 2023 concerning the promotion of foreign funds, the promotion of a fund to retail investors is prohibited. The promotion of a fund to "professional investors" and "counterparties" within the state ("UAE"), each term as defined in the SCA rule book, shall be limited to only funds that are registered with SCA for marketing on a private placement basis. SCA approval for promotion of a fund in the UAE should not be considered a recommendation by the SCA to invest in the Fund, and the SCA shall not be responsible for any relevant party's failure to perform its functions and duties or for the accuracy of the information contained in the Fund's offering documents. The Fund and the interests have not been approved by or licensed or registered with the UAE Central Bank, the SCA, the Dubai Financial Services Authority, the Financial Services Regulatory Authority or any other relevant licensing authorities or governmental agencies in the UAE (the "authorities"). The authorities assume no liability for any investment that the named addressee makes as a professional investor. This pitch book is for the use of the named addressee only and should not be given or shown to any other person (other than employees, agents or consultants in connection with the addressee's consideration thereof). The interests may be illiquid or subject to restrictions on their resale. Prospective investors should conduct their own due diligence on the interests. If you do not understand the contents of this pitch book you should consult an authorised financial advisor.
The central bank of Bahrain, the Bahrain bourse and the ministry of industry and commerce of the kingdom of Bahrain take no responsibility for the accuracy of the statements and information contained in this or the performance of the fund, nor shall they have any liability to any person, investor or otherwise for any loss or damage resulting from reliance on any statements or information contained herein. This pitch book is only intended for accredited investors as defined by the central bank of Bahrain. We have not made and will not make any invitation to the public in the kingdom of Bahrain to subscribe to the interests in the fund and this pitch book will not be issued, passed to, or made available to the public generally. The central bank of Bahrain has not reviewed, nor has it approved, this pitch book or the marketing thereof in the kingdom of Bahrain. The central bank of Bahrain is not responsible for the performance of the fund.
This pitch book and the information contained herein does not constitute and is not intended to constitute an offer of securities and accordingly should not be construed as such. The Fund and any other products or services referenced in this pitch book may not be licensed in all jurisdictions, and unless otherwise indicated, no regulator or government authority has reviewed this document or the merits of the products and services referenced herein. This pitch book and the information contained herein has been made available in accordance with the restrictions and/or limitations implemented by any applicable laws and regulations. This pitch book is directed at and intended for the persons allowed to receive it under the applicable laws and regulations. This pitch book is provided on a confidential basis for informational purposes only and may not be reproduced in any form. Before acting on any information in this pitch book, prospective investors should inform themselves of and observe all applicable laws, rules and regulations of any relevant jurisdictions and obtain independent advice if required. This pitch book is for the use of the named addressee only and should not be given, forwarded or shown to any other person (other than employees, agents or consultants in connection with the addressee's consideration thereof).
Specifically, capitalized terms that are used in the following paragraphs and are not otherwise defined herein, shall have the meaning ascribed to them under the Regulation of Investment Advice, of Investment Marketing, and of Portfolio Management Law, 1995 (the "Investment Advice Law").
This presentation, as well as investment in the Fund described herein, is directed at and intended for Investors that fall within at least one category in each of: (1) the first Schedule of the Israeli Securities Law, 1968 ("Sophisticated Investors"); and (2) the First Schedule of the Investment Advice Law ("Qualified Clients").
No action has been taken or will be taken in Israel that would permit the public offering of the Funds, or distribution of materials that relate to investment therein to the public in Israel. Neither this document, nor any other document that relates to the Fund, has been approved by the Israel Securities Authority.
It is hereby noted that with respect to Qualified Clients, the Marketer is not obliged to comply with the following requirements of the Investment Advice Law: (1) ensuring the compatibility of service to the needs of client; (2) engaging in a written agreement with the client, the content of which is as described in section 13 of the Investment Advice Law; (3) providing the client with appropriate disclosure regarding all matters that are material to a proposed transaction or to the advice given; (4) a prohibition on preferring certain Securities or other Financial Assets; (5) providing disclosure about "extraordinary risks" entailed in a transaction (and obtaining the client's approval of such transactions, if applicable); (6) a prohibition on making Portfolio Management fees conditional upon profits or number of transactions; (7) maintaining records of advisory/discretionary actions.
By receiving this document you hereby declare that you are a Sophisticated Investor and a Qualified Client, that you are aware of the implications of being considered a Sophisticated Investor and a Qualified Client (including the implications mentioned in the above paragraph), and consent thereto. Any Investor which is either: (1) not a Sophisticated Investor; or (2) not a Qualified Client — must immediately return this presentation to: Ittai Dissentshik, 6 Masryk Blvd., Tel-Aviv, Israel. This presentation is for the use of the named addressee only and should not be given, forwarded or shown to any other person (other than employees, agents or consultants in connection with the addressee's consideration thereof). In any case, the Fund shall not be offered or sold to any investor in Israel which is not a Sophisticated Investor.
This presentation is not intended to serve, and should not be treated as Investment Advice or Investment Marketing. Accordingly, the content of this presentation does not replace and should not serve as substitution for Investment Marketing or Investment Advising that take into account the special characteristics and needs of each investor. The Marketer is affiliated with the Fund, has a personal interest in the sale of the Fund and might prefer the Fund over other Financial Assets, due to the fact that the Marketer may receive a financial benefit from the issuer.
This document may not be distributed in, and securities may not be offered or sold to investors located in, any other jurisdiction except where such distribution or offer complies with applicable law.