Private Equity Transactions 2024

Investment Rating - The report indicates a cautious optimism in the investment landscape for 2025, with a significant increase in deal-making activity anticipated, particularly in Europe and the Americas [7][8]. Core Insights - Dealmaking activity showed clear signs of recovery in 2024, particularly in sectors such as media, technology, and travel, while sectors exposed to inflationary pressures remained more cautious [2][3]. - Global private equity dry powder reached an all-time high of $2.6 trillion, indicating significant pent-up spending power ready to return to the market [7]. - The need for robust commercial insights underpinning investment decisions has become increasingly critical in the evolving market environment [8]. Summary by Sections Private Equity - The appetite for investing in high-quality assets with strong fundamentals remained strong across all sectors [4]. - On the sell-side, there was a greater focus on exit planning and identifying value creation opportunities well before exit [5]. B2B/Services - Strong deal flow was observed in acyclical industries, particularly in infrastructure services and energy transition themes [15][16]. - Professional services firms saw increased interest, with accounting buy-and-build platforms emerging as a key area of activity globally [16]. Consumer Goods - The Consumer Goods sector experienced a subdued M&A landscape, with deal volumes approximately 20% down compared to 2022 [23]. - Investors are hopeful for a recovery in 2025, driven by wage growth outpacing prices, which may restore consumer confidence [25]. Retail & Leisure - The Retail & Leisure sector displayed a polarized year, with buoyant activity in leisure and travel assets, particularly foodservice [31][32]. - An acceleration of deal activity is expected in 2025, with key themes including scalable foodservice propositions and sports-related assets [34]. Media - 2024 was a strong year for media M&A, with a significant increase in deal value, particularly in online marketplaces and advertising sectors [39][40]. - An abundance of exits is anticipated in 2025, especially in advertising and marketing services [41]. Technology and Digital - The technology sector saw significant deal flow, particularly in cloud IT and enterprise software, with a strong pipeline of activity expected into 2025 [47][51]. - Investors are closely monitoring opportunities in cloud-based data platforms and vertical software, with a focus on under-digitized industries [52]. General Trends - Sustainability and ESG considerations remain high on investor agendas, despite some governments watering down commitments [10]. - Generative AI is expected to play a crucial role in transforming investment strategies and operational efficiencies across various sectors [11][44].