Global Private Equity Factbook – Q4 2023

In Q4 2023, private equity investments saw a rebound as concerns over potential interest rate hikes and the severity of the global economic slowdown diminished. Private equity activities are expected to increase in the coming year, driven by a rise in distressed transactions and an uptick in secondary buyouts.

In the fourth quarter, deal activity went up 9% compared to the previous quarter, primarily led by a surge in public-to-private deals, private investment in public equity transactions, and buyouts. Capital investment grew 2%, with private equity transactions becoming smaller or requiring a larger proportion of equity in the total purchase price. Investments in Europe and North America saw an increase, but investment levels declined in the Asia-Pacific and MENA regions. 

Exits decreased 9% as firms adjusted their exit strategies, making significant changes to the original investment thesis of portfolio companies. Fundraising levels remained steady compared to the previous quarter amid a subdued market environment. IT, energy, and consumer products and services deals accounted for approximately 40% of the total capital invested in Q4.

PE is expected to continue pursuing both platform acquisitions and add-on strategies due to the significant amount of dry powder available (USD 1.8 trillion as of November 2023).

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