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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Quick takeaways
- Private equity firms are entering 2025 with $1.4 trillion in dry powder and heightened expectations for increased deployment activity in upcoming months.
- GPs are proactively addressing supply chain vulnerabilities while anticipating a significant rise in IPOs among strong market candidates this year.
Deep dives
Current Deal Environment and Growth Projections
The current deal environment in the private equity market shows strong momentum, mirroring trends from the previous year but on a larger scale. Public equity markets are thriving, interest rates are decreasing, and credit spreads are narrowing, which fosters a competitive atmosphere among lenders. Last year, global private equity acquisition activity increased significantly, with a marked improvement in both the number and value of deals. A recent survey indicates that approximately 75% of general partners anticipate a continued rise in activity over the next six months, bolstered by a robust $4 trillion in assets held by private equity firms.
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