Our Nordic PE sector team shares insights on PE deal volumes in key sectors across the Nordics.
The uncertain macroeconomic situation continued to impact the deal space and PE deal market in Q4/’24 – however, the increase in buyout deal volume provides reason for cautious optimism.
Comments on the Nordic PE market development
- LTM buyout deal volume increased for the first time since Q3/’23, while LTM VC deal volume continued to decline.
- VC deal volume reached its lowest quarterly level during the reporting period (Q4/’21-Q4/’24).
- Buyout deal activity increased substantially in NO, reaching the second-highest quarterly volume during the reporting period. SE buyout deal volume increased 18% on a QoQ basis after a slow Q3/’24. FI and DK buyout deal volume decreased, with DK reaching its lowest quarterly volume during the reporting period.
- Buyout deal volume increased in all key sectors. The Tech sector experienced the most significant increases as deal volume grew by 27 deals / 35% compared to Q3/’24.
- PE fundraising was active in Q4/’24, as five buyout funds, with a combined value of ~€3.3bn, and two VC funds, with a combined value of ~€240m were closed. Six new buyout and three new VC funds were opened in the Nordics during Q4/’24.
Implications on the outlook for PEs
- Cautious investment environment: while economic headwinds (e.g., delayed economic recovery and global economic fragmentation and uncertainties) persist, there are indications of recovery.
- IPO activity: the IPO market remains subdued; however, there is an uptick in preparations for IPOs and dual-track processes.
- Operational enhancements: PE firms continue to emphasize operational efficiencies within their portfolios to drive value creation and mitigate risks amid economic uncertainty.
- Extended deal timelines: despite positive signals, increased scrutiny and market uncertainties continue to prolong deal timelines. The alignment of valuation expectations between buyers and sellers remains a challenge, contributing to these extended processes.
The outlook is cautiously optimistic, balancing selective dealmaking with a focus on operational improvements. While economic challenges remain, resilient sectors and strategic transactions continue to offer attractive opportunities for PEs.
How can we help?
Our experienced advisors, offer together with the rest of the team, a spectrum of services including due diligence, deal advisory, management consulting, and IT support to gather all the needs of Private Equity sector.
