Schroders Capital Private Equity Lens Q4 2024
Private equity deal and exit activity has stabilised, while a correction in fundraising points to potentially attractive valuation opportunities ahead and the slowdown in distributions is driving expectations of a record year for secondaries.
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The Schroders Capital Private Equity Lens provides a data guide to the global private equity market each quarter, covering fundraising, deal and exit activity, valuation and performance trends across buyouts, growth and venture capital, and global secondaries.
Key takeaways from the Q4 2024 Private Equity Lens are:
- A healthy correction in fundraising suggests reduced competition for deals and more attractive entry valuations
- Deal activity remains steady, with potential for rebound as rates decrease
- Exit activity has stabilised, particularly in sponsor-to-sponsor exits, though trade sales have yet to recover
- Distributions are below historical averages but remain significantly better than during the Dotcom Crash and Global Financial Crisis
- Small and mid-market buyouts present attractive opportunities, with multiples at steep discounts to large buyouts and public small-caps
- Venture capital valuations have rebounded, with late stage venture approaching 2021 highs driven by AI activity
- Private equity performance has been stable, with solid returns in buyout and venture/growth performance returning to positive territory
- Record secondaries deal volume is expected in 2024, as LPs seek liquidity amid weaker exits and slower distributions.
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