This year's continued fundraising struggles have prompted GPs to offer increasingly aggressive fee concessions as they attempt to secure new commitments.

Early-bird breaks on management fees, transaction fee givebacks, volume discounts, and tighter expense caps have become routine and are accelerating the longer-term trend of private capital fee compression.

Over the June LTM period, private equity strategies raised just $592 billion, the lowest tally in seven years, according to Preqin.

PitchBook estimates that through the first half of 2025, 146 private equity funds closed on $149 billion; on current pacing, full-year totals are set to fall below the $333.4 billion raised in 2024 and well under the 463 funds that held a final close last year.

With fees and terms one of the few levers that managers can pull, steep discounts are starting to become the norm.

“Margins have been (and will continue to be) compressed,” notes Bain & Co.'s mid-year industry update. While the standard “2 and 20” endures on paper, Bain writes that concessions have “already reduced average net management fees by as much as half since the global financial crisis."

Coinvestment, typically fee-free or reduced fee, has also become a core (and even expected) part of the pitch and a major driver of blended-fee compression. According to a StepStone survey of 145 GPs, coinvestment volume is up around 30 percent since before the pandemic.

Driving current fundraising struggles is the same trend that's been beaten to death as a talking point over the past 24-months: a lack of liquidity and weak distributions are preventing LPs from putting new cash to work.

A knock-on effect from this absence of exits is that managers are now facing longer waits for carry realization in existing funds. That's also assuming they get carry at all—extended holds have increased the cash-on-cash returns required to hit returns hurdles. The result is that managers are dealing with pressure on performance-related economics in existing funds while simultaneously accepting worse terms on new vehicles.

This year's sole fundraising bright spot might also be the source of a new set of concerns: there's a possibility that the retail channel will only accelerate pricing pressure as it drives convergence of private and public markets.

Retail “raises the prospect of something entirely new for private capital: the proliferation of very large firms that charge lower fees for simply tracking the market (beta) vs. trying to beat it (alpha),” writes Bain. “Traditional wealth managers set the lowest possible cost for everything, which is why fees in that space have declined more than 2 basis points per year over the past 30 years, on average, cutting open-end mutual fund and ETF fees by over half.”

• Anglo American (LSE: AAL) agreed to combine with Teck Resources Limited (TSX: TECK) in an all-stock merger of equals that would create a combined company with a market capitalization of around $53 billion.

• Centurium Capital is weighing a sale of its stake in Taibang Biologic Group, a Chinese biopharmaceutical company, in a deal that could value the company at around $6 billion, per Bloomberg.

• Bain Capital agreed to sell WinTriX DC Group's China data center business to a consortium led by Guangdong Hec Technology for $3.93 billion.

• Novartis (NYSE: NVS) agreed to acquire Tourmaline Bio (Nasdaq: TRML), a clinical-stage biopharmaceutical company focused on developing pacibekitug for atherosclerotic cardiovascular disease, for approximately $1.4 billion.

• Cenovus Energy (TSX: CVE) sold its 50% stake in WRB Refining to Phillips 66 (NYSE: PSX) for $1.4 billion.

• Bending Spoons agreed to acquire Vimeo (NASDAQ: VMEO), a video platform for business, for around $1.38 billion in cash.

• Mitsubishi Electric agreed to acquire Nozomi Networks, an OT and IoT cybersecurity specialist, for around $1 billion.

• GIC and SoftBank are considering selling their stakes in VNLife, a Vietnamese fintech firm, at around a $1 billion valuation, per Bloomberg.

• Arsenal Capital Partners agreed to acquire ThermoSafe, a temperature-assured packaging business, for up to $725 million from Sonoco (NYSE: SON).

• Vitruvian Partners acquired a majority stake in DeepIntent, a New York-based healthcare advertising platform, for $637 million.

• Permira and Blackstone (NYSE: BX) agreed to acquire a $525 million minority stake in Dubai-based classifieds firm Property Finder.

• Shenandoah, an underground infrastructure company and portfolio company of GenNx360 Capital Partners, acquired Nu-Pipe, a South Carolina-based provider of pipe rehabilitation services.

• Arcapita acquired a majority stake in C&K Paving, a US-based provider of parking lot maintenance services.

• FGS Global acquired Tarplin, Downs & Young, a Washington-based healthcare policy and advocacy firm.

• ARCHIMED acquired Groupe Laboratoire Rivadis, a French developer, manufacturer, and distributor of skincare products for baby and elderly care.

• Rhône acquired Copperweld, a maker of bimetallic wiring products, from Kinderhook.

• GFL Environmental Inc. (NYSE: GFL) acquired Superior Waste Industries, an environmental services holding company, from Red Dog Equity.

• PAI Partners agreed to acquire Orion, an Italian provider of environmental monitoring services, from Xenon Private Equity.

• Bansk Group agreed to acquire a majority stake in BYOMA, a skin health brand, from Yellow Wood Partners.

• Capitol Meridian Partners and Stellex Capital Management agreed to acquire Beaufort, the aerospace and defense survival equipment division of Survitec, a Searchlight Capital Partners portfolio company.

• Baird acquired a minority stake in Sagard, a Canadian alternatives manager.

• Levine Leichtman is exploring a sale of its stake in Global Loan Agency Services (GLAS), a debt administration services firm, per Reuters.

• Signal Hill Equity Partners invested in Kluber Architects + Engineers, an Aurora, Illinois-based architecture, engineering, and design firm.

• TorQuest Partners invested in Waste Solutions Canada, a tech-enabled managed service provider for waste and recycling services.

• EnCap Flatrock Midstream invested in the launch of Aspen Midstream II, a company formed to pursue midstream infrastructure opportunities across North America.

• Dissan Group, a Canadian janitorial products distributor and portfolio company of BDC Capital's Growth Equity Partners, acquired V-TO, a cleaning products and janitorial supplies provider.

• HCI Equity Partners agreed to sell SDS Rx, a healthcare logistics provider, to DHL Supply Chain.

• Leaf Home, a Gridiron Capital portfolio company, acquired Erie Home, a direct-to-consumer home solutions provider.

• Chamberlain Group, backed by Blackstone, acquired Arrow Tru-Line, a maker of overhead garage door hardware components, from MiddleGround Capital.

• Anaplan, backed by Thoma Bravo, acquired Syrup Tech, a New York City-based AI-native supply chain platform.

• Engie (Paris: ENGI) hired Morgan Stanley to explore the sale of a minority stake in its Brazilian power lines business, per Bloomberg.

• Cresso Health, a portfolio company of Cypress Ridge Capital, acquired Florida-based health insurance distributor GPS Insurance.

Tech, Vertical SaaS, & Misc. Enterprise

• Mercor, a platform connecting companies with AI experts, is in discussions for a Series C round targeting a valuation of $10 billion or more, with returning investor Felicis considering further investment.

• PsiQuantum, a quantum computing startup, raised $1 billion in Series E funding, co-led by BlackRock, Temasek, and Baillie Gifford, with participation from Macquarie Capital, Ribbit Capital, NVentures, Adage Capital Management, Qatar Investment Authority, Type One Ventures, Counterpoint Global, 1789 Capital, S Ventures, Blackbird, Third Point Ventures, and T. Rowe Price Associates.

• ElevenLabs, a voice AI firm, completed a $100 million secondary sale at a $6.6 billion valuation led by Sequoia Capital and ICONIQ Growth, with participation from Andreessen Horowitz, Smash Capital, and World Innovation Lab.

• DataCrunch, a Helsinki-based AI infrastructure company, raised $64 million in Series A funding co-led by byFounders, Skaala, Varma Mutual Pension Insurance Company, and Tesi, with participation from J12 Ventures.

• Adaptive Security, an AI social engineering prevention company, raised $55 million in Series A funding co-led by Andreessen Horowitz and OpenAI Startup Fund, with participation from Abstract Ventures, Eniac Ventures, CrossBeam Ventures, and K5.

• proteanTecs, a provider of electronics health and performance monitoring solutions, raised $51 million in Series D funding led by IAG Capital Partners, with participation from Samsung Catalyst Fund, Arm, Siemens, Addition, Zeev Ventures, Avigdor Willenz Group, MediaTek Innovation Fund, Intel Capital, Porsche Automobil Holding SE, and Koch Disruptive Technologies.

• Higgsfield.ai, a video reasoning engine, raised $50 million in Series A funding led by GFT Ventures, with participation from BroadLight Capital, NextEquity Partners, AI Capital Partners, Menlo Ventures, and Alpha Square Group.

• Motion, an AI work suite company, raised $38 million in Series C funding led by Scale Venture Partners, with participation from HOF Capital, 468 Capital, SignalFire, Y Combinator, Valor Equity Partners, Fellows Fund, and Leonis Capital.

• Fyxer AI, an AI executive assistant for professionals, raised $30 million in Series B funding led by Madrona, with participation from Lakestar Capital, 20VC, and 20Growth.

• Red Access, an agentless security platform for browsers, SaaS, and corporate apps, raised $17 million in Series A funding, led by Norwest Venture Partners, with participation from Ten Eleven Ventures, SentinelOne’s S Ventures, Elron Ventures, and Singtel Innov8 Ventures.

• Interaction, an AI assistant for messaging platforms, raised $15 million in seed funding led by General Catalyst, with participation from Village Global and Earlybird VC.

• Standard Fleet, a fleet management platform, raised $13 million in Series A funding led by Nova Threshold, with participation from WEX Venture Capital, SNR, Burst Capital, Canvas Ventures, Liquid2, Night Capital, Olive Capital, and UP2398.

• Cassidy, an AI automation platform for non-technical teams, raised $10 million in Series A funding led by HOF Capital, with participation from The General Partnership, Neo, Alumni Ventures, and Quest Venture Partners.

• Sphinx, a company building AI for data, raised $9.5 million in Seed funding led by Lightspeed, with participation from Bessemer Venture Partners, Box Group, K5, and Impatient VC.

Fintech

• Speedchain, a fintech company for commercial card and expense management in project-driven sectors, raised $111 million in strategic equity and debt financing from Community Investment Management, GTM Fund, Village Global, TTV Capital, K5 Global, Tandem, and Emigrant Bank.

• Aven, a fintech offering home equity-backed credit cards, raised $110 million in Series E funding at a $2.2 billion post-money valuation, led by Khosla Ventures, with participation from General Catalyst, Caffeinated Capital, GIC, Electric Capital, and Founders Fund.

• Inversion Labs, a blockchain private equity firm, raised $26.5 million in seed funding led by Dragonfly Capital, with participation from VanEck, ParaFi Capital, Faction Ventures, Wintermute Ventures, Folius Ventures, HashKey Capital, Mirana Ventures, Race Capital, Portal Ventures, Metalayer Ventures, Volt Capital, Moonrock Capital, Breed VC, Topology, Bodhi Ventures, Lvna Capital, Escape Velocity, Comfy Capital, and Borderless Ventures.

Healthcare

• Strive Health, a value-based kidney care company, raised $300 million in Series D equity funding led by New Enterprise Associates and secured $250 million in debt financing led by Hercules Capital, with participation from CVS Health Ventures, CapitalG, Echo Health Ventures, Town Hall Ventures, Redpoint, and BlackRock.

• Harbor Health, a primary and specialty care provider and health insurer, raised $130 million in Series C funding, co-led by General Catalyst, 8VC, and Alta Partners, with participation from DFO Management, Health 2047 Capital Partners, Lemhi Ventures, Martin Ventures, and Breyer Capital.

• Epigenic Therapeutics, a clinical-stage drug development company, raised $60 million in Series B funding led by Lapam Capital, with participation from Qiming Venture Partners, OrbiMed, and IFSC.

• CUTISS, a late-stage clinical company developing regenerative skin therapies, raised CHF 56 million in Series C funding co-led by Giammaria Giuliani family office and Shiloh Advisors AG.

• Predoc, an AI health information platform, raised $30 million in seed and Series A funding led by Base10 Partners, with participation from Northzone, Eniac, and ERA.

• Ridge Biotechnologies, an AI-enabled company designing enzymes and targeted drugs for precision medicine, raised $25 million in seed funding led by Sutter Hill Ventures, with participation from Overlap Holdings.

• TERN Group, an AI-powered healthcare talent mobility platform, raised $24 million in Series A funding led by Notion Capital, with participation from RTP Global, LocalGlobe, EQ2 Ventures, Leo Capital, and Presight Capital.

• Teton.ai, a healthcare predictive intelligence company, raised $20 million in Series A funding led by Plural, with participation from Bertelsmann Investments, Antler Elevate, Nebular, and PSV Tech.

• LightSpun, an AI-powered dental insurance administration platform, raised $13 million in Series A funding led by Brewer Lane, with participation from Virtue, Cambrian, and Industry Ventures.

Industrials, Greentech, & Other

• CuspAI, an AI chemistry model developer, raised $100 million in Series A funding co-led by New Enterprise Associates and Temasek, with participation from NVentures, Samsung Ventures, Hyundai Motor Group, Basis Set Ventures, FJ Labs, Giant Ventures, LocalGlobe, Northzone, Prosus Ventures, Tiferes Ventures, and Touring Capital.

• Sapphire Technologies, a cleantech energy recovery systems developer, raised $18 million in Series C funding led by Mitsubishi Heavy Industries, with participation from Equinor Ventures and Energy Capital Ventures.

• Proxima Fusion, a Munich-based developer of fusion power plants, raised €15 million in Series A extension funding co-led by CDP Venture Capital, the European Innovation Council Fund, and Brevan Howard Macro Venture Fund.

• LeydenJar, a Dutch deep-tech company developing silicon anodes for lithium-ion batteries, raised €13 million in new funding co-led by Extantia and Invest-NL.

• Puro.earth, a carbon removal crediting platform, raised €11 million in Series B funding led by Nasdaq, with participation from Fortum Innovation & Venturing.

• Maeving, a UK-based electric motorcycle manufacturer, raised £11 million in Series A funding co-led by Venrex, Future Planet Capital, and Elbow Beach Capital.

• Nuclearn, an AI platform for nuclear operations, raised $10.5 million in Series A funding led by Blue Bear Capital, with participation from SJF Ventures, AZ-VC, and Nucleation Capital.

• Legal & General raised €600 million for a digital infrastructure fund.

• Gemini Investors is raising $75 million for its eighth lower middle market private equity fund.

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