Dechert Sees Strong M&A and Private Equity Activity in Early 2026

Following a period of compressed deal volume driven by elevated interest rates and valuation uncertainty, Dechert advised on a significant number of sponsor-led buyouts, corporate carve-outs and strategic consolidation transactions in early 2026. From January through April, the firm advised on transactions spanning financial services, healthcare, technology, industrials and other sectors, with aggregate announced deal value in the tens of billions of dollars.

Some key transactions from this period include:

• Dechert is representing Select Medical Holdings Corporation in connection with its US$3.9 billion take-private by a consortium of investors led by Executive Chairman Robert A. Ortenzio, Martin F. Jackson, and Welsh, Carson, Anderson & Stowe. The transaction is among the largest healthcare take-privates of 2026 and reflects sustained conviction among experienced operators and healthcare-focused sponsors in the vitality of the healthcare sector.
• Dechert advised Court Square Capital Partners and Kodiak Building Partners on the US$2.25 billion sale of Kodiak, a significant transaction in the building products distribution sector and a good example of the return of PE-backed exit activity. Dechert previously advised Court Square on its original investment in Kodiak followed by several add-on transactions and financings.
• Dechert counseled the Audit Committee of Tesla, Inc. in connection with Tesla's approximately US$2 billion investment in X.AI Holdings Corp.'s Series E fundraising.
• Dechert advised AGL Credit Management on its strategic investment from Goldman Sachs Alternatives, which supports approximately US$1 billion in new investment capacity for a private lending vehicle.

Deal flow from the time period highlights several sector-level themes:

• Financial Services Transactions: The alternative credit market is undergoing a period of rationalization. In addition to the AGL/Goldman Sachs Alternatives transaction, Dechert advised Monroe Capital Corporation on its strategic transactions with Horizon Technology Finance Corporation and Monroe Capital Income Plus Corporation and represented SOFIX and Mount Logan Management in connection with SOFIX's acquisition of assets from Yieldstreet Alternative Income Fund, a closed-end registered investment company. These transactions reflect a broader industry trend of asset managers, including business development companies (BDCs), scaling up to compete effectively for institutional capital.
• Accounting Sector M&A: Dechert advised EisnerAmper on TowerBrook's continuation vehicle, a notable transaction in a sector that continues to see significant M&A activity. This transaction represents the latest in a series of accounting sector transactions on which we have advised, including the pioneering large PE investment in the alternative practice space that set the model for subsequent transactions and helped ignite a wave of deal activity.
• Healthcare M&A Continues to Attract Sponsor Capital: Healthcare remains one of the most active sectors for M&A activity in 2026. Beyond the Select Medical take-private, Dechert advised Graham Partners in its acquisition of Midwest Products & Engineering, a contract designer, developer and manufacturer of complex electromechanical and robotic-assisted surgical systems for the medical device market, from healthcare private equity firm BPOC. Management-led take-privates and PE-backed buy-and-build strategies in healthcare continue to be a defining feature of the 2026 M&A landscape.
• Technology Acquisitions: Dechert advised Blackstone Growth on the completion of its investment in Property Finder, a leading property portal in the Middle East and North Africa (MENA) as part of a US$525 million strategic investment round led by funds advised by Permira and advised Court Square Capital Partners on its acquisition of CallTower, a cloud communications platform. The firm also advised Bentley Systems on its acquisition of Pointivo Inc., a technology company in the infrastructure intelligence space, and advised Sterling Investment Partners on its acquisition of Cyber Advisors, a provider of cybersecurity and IT services. These transactions reflect continued PE sponsor and strategic appetite for scaling enterprise software, technology-enabled and managed security services businesses.
• Industrials and Building Products Consolidation: Dechert represented Griffon Corporation in its entry into a joint venture with ONCAP, a subsidiary of Onex Corporation, creating a leading global provider of hand tools, home organization solutions and lawn and garden products for professionals and consumers, and advised Aecon Group Inc. on its acquisition of Duna Services and an interest in KNX Utility Services. Together with the Kodiak exit, these transactions indicate meaningful activity in the industrials and building products sectors as strategic buyers and sponsors continue to pursue bolt-on and platform-building opportunities.

The early months of 2026 seem to validate what many in the market anticipated: pent-up deal demand is translating into real transaction volume despite some continued macroeconomic headwinds. PE sponsor capital deployment, board-led strategic processes and financial services consolidation have each contributed to an active M&A environment, a trend that market participants expect to continue throughout the year barring major disruptions.