The Hottest AI Trade In Private Equity Isn't Software — It's Power Plants

Caroline Ryan — Mon, 18 May 2026 20:41:24 +0000

A review of major U.S. private equity transactions in early 2026 shows a sharp concentration of capital flowing into energy and infrastructure-linked businesses. The trend comes as dealmakers grow more selective amid volatile financing conditions, geopolitical instability, and mounting pressure to generate returns after years of sluggish exits.

According to a recent report from Ropes & Gray, these were some of the top 10 largest private equity deals in Q1:

The $38.4 billion take-private of utility giant AES by a consortium including Global Infrastructure Partners, EQT, California Public Employees’ Retirement System, and Qatar Investment Authority.

Other notable transactions included Mitsubishi Corporation's $7.5 billion acquisition of natural gas producer Aethon Energy, Vistra Corp.'s $4.7 billion purchase of Cogentrix Energy from Quantum Energy Partners, and a $5 billion divestiture involving PJM Interconnection assets.

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The concentration of deals tied to electricity generation, transmission, and industrial infrastructure reflects a broader shift underway in private markets.

Capital is rotating toward sectors with "more visible cash flows and lower disruption risk," including professional services, finance and construction as well as "HALO" assets tied to AI deployment, the report noted.

The continued rise in $5 billion transactions underscores that capital is still ...

Full story available on Benzinga.com

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The Hottest AI Trade In Private Equity Isn't Software — It's Power Plants