Global Private Equity Factbook – Q1 2024

In Q1 2024, private equity investments declined amidst rising concerns over high interest rates. Private equity activities are expected to surge in the upcoming quarters, driven by substantial dry powder availability and the expectation of interest rate reductions.

In the first quarter, deal activity dropped 20% compared to the previous quarter, primarily due to reductions in private investment in public equity (PIPE) deals, buyouts, and growth/expansion transactions. Capital investments also declined 19%, hindering the execution of large-scale deals due to increased borrowing expenses and lower leverage thresholds. While investments in North America grew, investment levels in Europe, Asia-Pacific, and the MENA regions declined.

Exits decreased by 33% as firms extended the retention of portfolio companies amid market volatility. Fundraising levels remained consistent with the previous quarter in a subdued market environment. IT, financial services, and healthcare deals accounted for approximately 43% of the total capital invested in Q1.

PE is expected to continue pursuing both platform acquisitions and add-on strategies due to the significant amount of dry powder available.

This edition of the Global Private Equity Factbook offers insights on the global PE investment activity, features the key sectors targeted, and provides an outlook for the industry in the coming quarter.