Private equity deal value surges to $639bn in 2024, amid rising valuations

Global private equity and venture capital deal activity saw a 24.7% increase in value in 2024, reaching $639bn, according to S&P Global Market Intelligence.

This growth comes despite a 6.5% decline in the volume of transactions, reflecting rising valuations and strategic investments in key sectors.

While the 2024 figures represent a rebound from 2023, they remain below the highs of 2021, when deal value peaked at $1.17tn. Fundraising also rose by 9% to $283.7bn but fell short of the record-breaking $663.85bn raised in 2021.

Private equity and venture capital deals accounted for 17% of overall M&A activity, the highest share since 2019. The U.S. and Canada led in deal value, while Europe topped the charts in deal volume, showcasing the regional strengths of PE and VC markets.

The energy sector saw the most significant growth, with private equity deals totalling $346m, a sixfold increase from 2023, driven by demand linked to artificial intelligence. The utilities sector led PE-backed M&A transactions, recording $606.4m in deal value.

This upward trend highlights the resilience of private equity and venture capital markets, even amid broader economic uncertainties. The focus on high-growth sectors such as energy and utilities signals the strategic pivot of investors to align with transformative trends.

Source: Investment Executive

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