Dealmaking rebound sees private equity recovery taking shape -- Bain & Company Global PE Report
- Editor
- Mar 3
- 1 min read
Whats Happening:
Bain & Company's 16th annual Global PE Report reveals a rebound in private equity dealmaking and exits in 2024, signaling a recovery. However, sluggish fundraising and economic uncertainties continue to pose challenges for the industry. The report highlights a 37% year-on-year increase in buyout investment value and a 34% rise in global exit value, but notes that fundraising fell for the third consecutive year.
Key Moves:
Buyout investment value increased 37% year-on-year to $602 billion in 2024
Global exit value jumped 34% year-on-year to $468 billion
Fundraising across private asset classes fell 24% year-on-year
By The Numbers:
Average deal size jumped to $849 million in 2024
Deals worth $1 billion or more made up 77% of total deal value
Distributions as a proportion of PE's net asset value sank to 11%
Key Quotes:
"2024 can be considered the year of the partial exhale. Whether the renewed impetus in 2024 can build will depend on how policy unfolds," said Hugh MacArthur, chairman of the global Private Equity practice at Bain & Company.
"Generating alpha has never been more challenging. Strong performance is getting harder, not easier," said Rebecca Burack, head of the global Private Equity practice at Bain & Company.
Bottom Line:
While private equity is showing signs of recovery with increased dealmaking and exits, the industry faces structural challenges including rising costs, fee pressure, and fierce competition. Funds must develop differentiated strategies for value creation to succeed in an evolving market landscape that differs from past recoveries.
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