Private Equity Transactions 2024

Following a challenging 2023, the private equity and M&A landscape experienced notable recovery in 2024. Despite persistent macroeconomic turbulence, dealmaking activity rebounded, particularly in Europe and the Americas, as investor confidence began to return. The year revealed a diverse range of performance across sectors, with strong growth in areas like media, technology, and travel, contrasted by hesitancy in consumer-facing industries exposed to inflationary pressures.

Our Private Equity Transactions 2024 report delves into the key trends and dynamics that shaped the market:

1. Sector Variations and Opportunities

• Growth Sectors: Media, Technology, and Travel emerged as leaders, with deal values significantly up compared to 2023. These sectors benefited from underlying resilience and continued investor interest in high-growth industries.
• Consumer Challenges: Consumer-facing sectors grappled with inflationary impacts on spending, though segments like Beauty, Pet Care, and World Foods remained attractive to investors.
• Sustainability and Energy Transition: Investments in Climate Change and Energy Transition-related sectors, such as grid upgrades and decarbonisation services, saw strong momentum.

2. Strategic Sell-Side Planning

• Early Exit Preparation: Asset owners increasingly focused on creating robust, well-proven growth plans to maximise valuations and improve deal closure success.
• Value Creation: Demonstrating tangible growth opportunities became essential, driving a shift toward deeper strategic planning well ahead of exit discussions.

3. Investor Sentiment and Approach

• High-Quality Assets: The appetite for assets with strong fundamentals remained robust across all sectors, with buyers prioritising quality over volume.
• Cautious Optimism: Although valuation misalignment and the cost of capital continued to pose challenges, greater alignment between buyers and sellers helped unlock opportunities in many industries.

Looking Ahead into 2025: Key Themes for Dealmaking

As we progress into 2025, private equity markets are positioned for a transformative year. Key trends expected to shape the year ahead include:

• Record Levels of Dry Powder: With $2.6 trillion in dry powder globally, private equity funds are well-placed to act as market conditions improve.
• Generative AI: From enhancing operational efficiencies to transforming customer acquisition and deal origination, generative AI will play a central role in investment decisions and value creation strategies.
• ESG: Despite varied government commitments, sustainability remains a priority for investors, particularly in assessing the long-term resilience of assets.
• Evolving Value Creation: Buyers will increasingly require proof of growth opportunities and a clear value creation strategy as reliance on financial engineering diminishes.

Unmatched Expertise in Private Equity and M&A

With decades of experience, OC&C continues to partner with private equity firms, infrastructure funds, family offices, and corporate acquirers to navigate complexity, seize opportunities, and unlock value.

To discuss our deep sector and topic expertise in more detail and how we can help you achieve growth in 2025 and beyond, simply reach out to [email protected] or to a member of our team today.