Ardian’s Mark Benedetti predicts recovery in private equity exits under Trump

Mark Benedetti, Executive President at Ardian, forecasts a rebound in private equity exits during Donald Trump’s second presidential term.

Speaking at the World Economic Forum in Davos, Benedetti noted that many firms had delayed asset sales due to election uncertainty but are now bringing investments to market.

While 2021’s record-breaking exit activity may not return, Benedetti expects deal flow to rebound to levels seen in 2018 and 2019. He also highlighted the easing of constraints in mid-sized company deals, which could boost transaction volumes in the coming months.

The downturn in traditional exits has driven unprecedented activity in the secondary market, where firms sell investments to other funds. Ardian recently closed a $30bn secondary fund, the largest in history, reflecting strong demand for alternative exit strategies.

In the technology sector, Trump’s election has reinvigorated dealmaking, according to Lightspeed Venture Partners’ Bejul Somaia. “This year, two of our companies have signed acquisition term sheets at valuations between $1.5bn and $3bn, with a third deal in discussion,” Somaia said, underscoring the momentum in the space.

This renewed confidence in private equity exits signals a shift in market dynamics, with firms adapting to new opportunities under the current administration.

Source: Reuters

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