Hunt Scanlon Ventures Releases Q3 2026 M&A Report Highlighting AI Investment and Growing Competition for Quality Businesses

GREENWICH, Conn., October 28, 2026 — Hunt Scanlon Ventures, a leading M&A advisory firm focused on the human capital markets, has released its Q3 2026 M&A Report, examining how artificial intelligence, institutional capital, family office investment, and intensifying competition for attractive acquisition targets are reshaping the global executive search, leadership advisory, and talent intelligence sectors.

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At the center of the report are Hunt Scanlon Ventures’ investments in three AI-powered businesses: Verata, formerly AiFlow, an AI-driven market intelligence platform; HelloSky, a talent intelligence platform purpose-built for executive search; and millionways, a behavioral intelligence company developing technology designed to understand human motivations, communication patterns, and decision-making.

Together, the investments reflect HSV’s strategy of backing specialized intelligence platforms that combine proprietary data, domain expertise, and artificial intelligence to improve complex business decisions.

“Artificial intelligence is fundamentally changing the economics of information and human capital,” said Scott A. Scanlon, CEO and co-founder of Hunt Scanlon Ventures. “The greatest opportunities are emerging in platforms that combine specialized data, deep market expertise, and technology to improve decisions that have historically depended on fragmented information and human judgment.”

Private Capital Expands Its AI Investment Strategy

The report examines how major institutional investors are expanding beyond the initial AI infrastructure buildout toward enterprise applications, proprietary intelligence, and technologies capable of generating measurable business value.

TPG provides a compelling example of this broader investment approach, with exposure across foundational AI developers, enterprise applications, data center infrastructure, and internal AI capabilities. The firm’s commitment of up to approximately $1 billion to Tata Consultancy Services’ HyperVault AI data center business illustrates the scale of capital supporting the industry’s continued expansion.

Research from Morgan Stanley projects approximately $800 billion in AI-related capital expenditures in 2026, rising to $1.1 trillion in 2027. At the same time, the firm found that approximately 25 percent of S&P 500 companies cited at least one quantifiable AI impact by July 2026, compared with 15 percent in the third quarter of 2025.

“Investors are becoming more focused on what AI actually delivers,” said Drew Seaman, managing director at Hunt Scanlon Ventures. “The ability to demonstrate stronger decision-making, better operating performance, and scalable commercial applications will increasingly separate differentiated platforms from businesses simply incorporating AI into existing workflows.”

Family Offices Expand Their Role in Human Capital Markets

Beyond traditional private equity, the report highlights the increasing influence of family offices as direct investors in private businesses.

Altss estimates that the world’s 50 largest family offices collectively manage approximately $2.4 trillion in assets. Its research also identifies a significant increase in direct investment activity, expanding the universe of potential buyers for founder-led companies.

For the human capital industry, the implications extend beyond acquisition opportunities. As family offices build larger direct investment portfolios, access to leadership assessment, executive recruitment, succession planning, and organizational advisory services can become increasingly important.

The report highlights the Hoffmann Family of Companies and its relationship with DHR Global as an example of how specialized executive search expertise can support leadership development across a diversified investment portfolio. The family’s investments in Oberweis Dairy and the Pittsburgh Penguins demonstrate the importance of experienced leadership in supporting portfolio-company performance and long-term value creation.

Competition Intensifies for Quality Acquisition Targets

Hunt Scanlon’s analysis also points to an increasingly competitive lower-middle-market M&A environment, where substantial available capital is pursuing a limited supply of high-quality, acquisition-ready businesses.

Bain & Company’s Global Private Equity Report 2026 estimates approximately $1.3 trillion in global buyout dry powder, while Axial reports that 2,635 new buyers joined its lower-middle-market platform in 2025, representing a 36 percent increase from the previous year.

According to the Q2 2026 Market Pulse Survey from the International Business Brokers Association and M&A Source, approximately three-quarters of surveyed advisors characterized the $2 million to $50 million transaction market as favoring sellers. Among reported completed transactions above $5 million, 87 percent attracted at least three offers.

“The amount of capital pursuing acquisitions is substantial, but the number of businesses meeting buyer expectations remains limited,” said Mr. Scanlon. “For founders who have built strong, profitable companies with established leadership teams and durable client relationships, that imbalance can create meaningful leverage.”

Technology and Leadership Drive Enterprise Value

The report also examines how technology modernization is influencing the competitive position and long-term value of executive search firms.

Featuring an interview with Andrew Shapiro, founder of Cluen, the analysis explores how artificial intelligence, centralized data infrastructure, and repeatable business development processes are becoming increasingly important as independent search firms compete with larger, consolidated platforms.

Research from Hunt Scanlon Media and Recruiterflow, alongside findings from Bullhorn and Grant Thornton, reinforces the importance of technology integration, institutional knowledge, and scalable operating systems to business performance and acquisition readiness.

“From an M&A perspective, the question is whether a firm’s success can be transferred and scaled,” said Mr. Seaman. “Businesses that have centralized their institutional knowledge, established repeatable processes, and invested in modern infrastructure can present a more compelling growth story to potential buyers.”

The report concludes with practical guidance for founders considering a strategic acquisition, private equity investment, recapitalization, or succession event. Hunt Scanlon Ventures emphasizes the importance of aligning transaction objectives, developing leadership depth, maintaining sustainable margins, diversifying client relationships, and strengthening operating infrastructure well before entering the market.

About Hunt Scanlon Ventures

Hunt Scanlon Ventures is a leading M&A advisory firm focused exclusively on the global human capital market. The firm represents both buy-side and sell-side clients across human capital verticals including executive search, culture and leadership consulting, interim and on-demand talent solutions, RPO, HR technology, and executive coaching.

Hunt Scanlon Ventures advises strategic acquirers and private equity sponsors on acquisition strategies while supporting founders and leadership teams seeking to exit, scale, or recapitalize. The firm also invests in top-tier talent platforms as a limited partner, often co-investing alongside venture capital managers in the sector.

Contact:

Drew Seaman
Managing Director
(602) 622-1392
[email protected]