Deal Monitor
Q1 2026 | Market Wrap
With the first quarter of 2026 now complete, we are seeing a meaningful shift in the broader private equity market—one that is closely reflected in the growing activity and momentum across our investment pipeline.
The broader private equity market entered a more active and mature phase in early 2026. While the era of ultra-low interest rates is long behind us, we appear to have reached an inflection point: deal activity has improved since last year’s tariff-driven disruption, and more sellers are coming to market.
At the same time, competition for high-quality assets remains intense. In one process we participated in, more than 80+ groups submitted indications of interest! In this type of situation, we will never be the highest bidder—and that is by design. While we may record a technical “loss,” we do not view it that way. Our discipline and process are built around paying the right price and maintaining a margin of safety relative to intrinsic value, which remains central to The Collective’s investment philosophy.
Many conventional private equity firms are operating under pressure to deploy capital within a fixed timeframe. That dynamic can lead to overpaying in the hope that outcomes work out over time. We do not operate that way. Our capital, along with yours, is permanent and not tied to a forced schedule, allowing us to remain patient and opportunistic.
Q1 2026 | Pipeline Performance
Activity at The Collective peaked in February, when we evaluated 21 new opportunities, reflecting the gradual increase in transaction volume across the market. The decline in our active pipeline in March — from 38 opportunities to 29 — was somewhat disappointing on the surface, but it reflects the discipline of our process.
Several opportunities were "killed" early because they did not meet our investment standards or because sellers had unrealistic valuation expectations. As a result, the quality of the pipeline is stronger today: we completed our first deal of the year, a minority equity investment into Stillwater Hospice, and have greater conviction across all stages.
Q2 2026 | Looking Ahead
Our sourcing efforts have accelerated and continue to uncover high-quality businesses with compelling models, strong growth prospects, and enduring profitability.
Today, most of our time is focused on six opportunities in the Due Diligence stage, and we are pleased with their quality. Half are deals that we originated and control. In these cases, we are partnering with strong operators who help evaluate the investment, contribute capital to help fund it, and then ultimately run the business day to day.
In the other half of the Due Diligence projects, we are working alongside equity partners who control the pace of the process, while we support the transaction where we can. If completed, these investments would likely resemble the Stillwater Hospice investment, with The Collective taking a minority equity position.
One of those opportunities, Project Omar, stands out and is most likely the next deal we will present for your investment consideration. As a sneak peek, think of this high-growth business as a plug-and-play outsourced imaging department for healthcare facilities. Instead of a clinic dealing with the headache of hiring its own around-the-clock technicians, managing a roster of radiologists, and maintaining expensive machines, the company provides all of this as a bundled, turnkey service. Importantly, they do not own any medical facilities or deal with insurance companies directly; they simply bill the facility operators for their service.
Stay tuned!