Navigating the Next Wave of Private Equity (PE) Group
Exits
PE groups are sitting on 28,000 unsold companies worth more than
$3tn. Deal activity is expected to increase in 2024. How do you
ensure you achieve the expected returns?
MARKET DYNAMICS
Longer hold periods attributable to higher interest
rates and lower achievable valuations have created a significant
transaction backlog for private equity groups. This backlog is
expected to drive increased deal activity in 2024.
The average hold period for buyouts in North American PE funds
hit 7.1 years in 2023, the industry's longest since 2000.
Contributing to this have been higher interest rates which, with
inflation still above target levels, the Fed is reluctant to cut
too quickly.
