NextWave Private Equity PE Pulse: key takeaways from Q4 2024
Jan 28, 2025
Private equity is gearing up for an exciting 2025 with a significant boost in deal value. A record US$565 billion in transactions was announced in 2024, indicating a 25% increase. Confidence is soaring, with 73% of general partners anticipating more activity. Key factors include narrowing valuation gaps and improved macro visibility. IPOs are expected to surge, especially among strong market players. However, supply chain concerns remain a top priority for GPs as they navigate potential tariffs and geopolitical stability.
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PE Deal Growth
- Global private equity acquisition activity increased significantly in 2024.
- Deals rose 25% in value and 20% in volume compared to 2023.
GPs Bullish on Deals
- 75% of surveyed General Partners (GPs) predict increased deal activity in the next six months.
- This positive sentiment suggests strong momentum in the PE market.
Exit Activity Lags
- While exits grew 20% in 2024, driven by secondary buyers, this is insufficient.
- PE firms hold nearly $4 trillion in assets, with 40% held for over four years, necessitating other methods to return capital to LPs.