Key Takeaways
- • Private equity dealflow recorded its worst second quarter performance since 2020, with the TMT (technology, media, and telecommunications) sector experiencing the steepest decline in deal volume year-over-year.
- • VSS (Värde Strategic Solutions) acquired a minority stake in Cordoba, positioning itself within the infrastructure reinvestment cycle as the sector experiences generational capital reallocation.
- • The TMT sector's deal contraction signals broader headwinds in the PE market during Q2 2026, suggesting investor caution or limited high-quality deal availability in technology-adjacent verticals.
Summary
Private equity dealflow deteriorated significantly in the second quarter of 2026, marking the weakest performance for the period since 2020. The primary driver of this decline was a sharp contraction in TMT (technology, media, and telecommunications) sector transaction activity, which saw the largest drop in deal counts relative to the prior-year comparison.
Against this backdrop of subdued dealflow, VSS announced a minority stake acquisition in Cordoba, a transaction that reflects strategic positioning within infrastructure assets undergoing generational reinvestment cycles. The investment signals confidence in selective, off-cycle opportunities as broader PE market conditions remain challenged.
The divergence between macro dealflow weakness and targeted strategic investments highlights the bifurcated nature of current PE markets, where dry powder remains substantial but deployment faces headwinds in certain sectors. TMT's pronounced underperformance compared to other verticals suggests either valuation disconnects between buyers and sellers, reduced exit momentum driving deal supply, or investor capital rotation away from technology-related assets in the current macroeconomic environment.
Against this backdrop of subdued dealflow, VSS announced a minority stake acquisition in Cordoba, a transaction that reflects strategic positioning within infrastructure assets undergoing generational reinvestment cycles. The investment signals confidence in selective, off-cycle opportunities as broader PE market conditions remain challenged.
The divergence between macro dealflow weakness and targeted strategic investments highlights the bifurcated nature of current PE markets, where dry powder remains substantial but deployment faces headwinds in certain sectors. TMT's pronounced underperformance compared to other verticals suggests either valuation disconnects between buyers and sellers, reduced exit momentum driving deal supply, or investor capital rotation away from technology-related assets in the current macroeconomic environment.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.