Market conditions are increasingly supporting private-equity-backed IPOs. Apollo Global Management announced plans for a $25bn buyout fund – its largest yet – signalling renewed momentum in the private equity space. 

Data from Bloomberg shows that buyout funds have raised more capital than any other strategy in 2024. Acquisitions and IPOs have surged, driven by central bank rate cuts and a stock market rally fuelled by deregulation prospects. This vibrant deal flow provides private equity firms with more opportunities to deploy capital and realise gains.

Matt Swain, head of direct placements and secondaries at Houlihan Lokey, noted that many investors are overallocated to public markets. This overexposure sets the stage for the private equity industry to capitalise on a “tidal wave of deals.” In North America, deal values climbed 38% to $227bn over the past year, while Europe saw a 16% rise to $82bn. A standout transaction was BlackRock’s $12.6bn acquisition of Global Infrastructure Partners, as the world’s largest money manager broadens its reach into private and alternative assets.

In Q4 2024, IPO activity hit $54bn – the highest since Q3 2022. These trends indicate that the outlook for private-equity-backed IPOs on US exchanges may improve further in 2025. Investors are advised to track these developments to fully understand the shifting dynamics in private equity fundraising and dealmaking.