Driven by renewed confidence and increased access to capital, private equity dealmaking is set to pick up during 2024.
As macroeconomic headwinds steady and financial markets continue to reopen, the outlook for private equity (PE) M&A in 2024 looks promising.
In 2023, PE deal volumes and values remained sharply down from 2021, due to elevated interest rates and market uncertainty. Dealmakers faced significant difficulty in securing financing, and a disconnect persisted between buyers' and sellers' valuation expectations.
However, with the long-predicted recession not materializing and inflation rates gradually decreasing, dealmakers now anticipate rate cuts that will boost PE investing. In a recent KPMG survey, 80% of respondents indicated they were looking to complete a transaction worth more than $1 billion, with many targeting the second half of 2024.
Despite the newfound optimism, a few headwinds remain. Tighter regulatory oversight and upcoming elections this year are expected to bring new levels of uncertainty in deal closures. Successful PE players will be those who combine innovative dealmaking with a relentless focus on operational excellence.
Download our paper, 2024 M&A outlook for private equity, to learn where and how PE leaders plan to make deals to drive value creation. For our 2024 M&A outlook for corporate deal makers, click here.
2024 M&A outlook for private equity
Download PDFKPMG Value Creation
Leverage better and faster insights to uncover opportunities for value throughout the deal.
Will M&A gain more traction in 2024? Q4'23 M&A trends in IM
Industrial manufacturing M&A is expected to revive in 2024. Discover the key trends that are driving a positive shift in the industry.
New year could see C&R M&A tailwinds: Q4'23 M&A trends in C&R
M&A activity is set to rise in a stabilizing economy with declining interest rates. Discover the key trends driving a shift in the industry.
Dealmakers consolidate and wait: Q4'23 M&A trends in energy and natural resources
The ENRC sector is navigating M&A trends in oil and gas, renewables, and chemicals to adapt to market shifts and drive transformation.
Better days ahead? Q4'23 M&A trends in private equity
Coming off another lean year, the PE deal market shows signs of a rebound in 2024 amid hopes of a soft landing for the economy.
Will this year be different? Q4'23 M&A trends in TMT
With reduced uncertainty in the macro environment and new avenues of growth, dealmakers are optimistic about 2024.
A slow turning: Q4' 23 M&A trends in financial services
The financial services landscape saw a slowdown in M&A activity in 2023, but hopes remain high for a more dynamic market in 2024.
Mastering complex deals and integration
To capture value in tech M&A, focus on revenue synergies, employee retention, and the customer experience.
2024 Healthcare and Life Sciences Investment Outlook
We analyze how eight subsectors fared and how deal activity and market drivers could shape the 2024 investment landscape.
KPMG Deal Advisory distributes a wide selection of thought leadership that highlights the latest M&A issues and trends.