Global Private Equity Factbook – Q3 2024

In Q3 2024, private equity investments declined amidst rising concerns over high interest rates and cautious investor sentiment. Looking ahead, activity is expected to rebound, driven by substantial dry powder availability and an anticipated reduction in interest rates.

During the quarter, deal activity dropped by 17% compared to the previous one, largely due to a decrease in private investment in public equity (PIPE) deals, public to private transactions, and growth/expansion transactions. Despite this, capital investments rose by 14% as PE firms shifted focus to high-value, premium investments. While investments in North America, Asia-Pacific, and the MENA region grew, investment levels in Europe and Latin America declined.

Exits remained steady compared to the previous quarter, as firms opted to hold onto portfolio companies amid ongoing market volatility. Fundraising levels also declined in a more subdued market environment. Key sectors for investment included IT, financial services, and energy, which together accounted for 60% of total invested capital.

PE deal activity is expected to rebound in the last quarter of 2024, driven by increased deployment of available dry powder, a recovering fundraising environment, and lower lending rates.

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