Private Equity Dealmaking Hits Record High as Industry Shifts Focus
- Editor
- Mar 2
- 2 min read
What's New
PitchBook's Q4 2024 US Public PE and GP Deal Roundup reveals a record-breaking 141 GP transactions in 2024, nearly doubling 2023's activity and surpassing the previous 2021 high of 110 deals. Disclosed deal value reached an all-time high of $47.6 billion, with BlackRock's acquisitions of GIP ($12.5B) and HPS ($12B) accounting for more than half the total.
Why It Matters
This surge in dealmaking signals a fundamental shift in the alternative asset management landscape, with large players aggressively pursuing consolidation to build scale across multiple asset classes, particularly in high-growth areas like private credit and infrastructure.
Big Picture Drivers
Realizations have rebounded significantly, with the "Big Seven" PE firms boosting realizations by 36% YoY, returning 97 cents per dollar raised in 2024—up from 89 cents in 2023.
Credit dominance continues with private credit strategies commanding 62.6% of capital raised, offering equity-like returns (median 13.4% TTM) with lower volatility.
Infrastructure demand is surging, exemplified by BlackRock's $12.5B GIP acquisition, as firms position for anticipated growth in energy transition and digital infrastructure.
Perpetual capital reached a new high of $1.6 trillion (40.9% of total AUM), growing 19.2% YoY as firms seek stable, recurring fee streams.
Control transactions now dominate dealmaking, marking a shift from the noncontrol deals that previously represented two-thirds of activity.
By The Numbers
$47.6B: Record fully disclosed GP deal value in 2024
141: Total GP majority/minority transactions, versus 85 in 2023
9.1%: Median TTM PE return for Big Seven, underperforming S&P 500's 25.0%
13.4%: Median TTM private credit return, demonstrating the strategy's strength
$394.1B: Credit fundraising by Big Seven firms, up 38.5% from 2023
Key Trends to Watch
Strategic M&A and minority deals will likely drive up GP valuations, potentially inhibiting GP stake dealmaking as competition for targets intensifies.
PE returns are expected to rebound as moderating interest rates boost realizations and distributions, though public markets continue to outperform.
Large players will accelerate expansion into mass affluent markets through innovative product offerings and strategic partnerships.
Infrastructure and digital assets will see accelerated investment as firms capitalize on datacenter development opportunities and the "global industrial renaissance."
The Wrap
The private markets industry is experiencing a fundamental reconfiguration as major players pursue aggressive consolidation, with BlackRock's landmark deals highlighting the strategic imperative to build scale across multiple asset classes. For GPs, realizations are finally catching up with fundraising, potentially unlocking a healthier capital raising environment in 2025.
Comments