November 9, 2023
Private Equity: 2024 Global Outlook Survey
Dechert recently released its annual Global Private Equity Outlook, which reports the results of a survey of 100 senior-level executives within PE firms based around the globe with at least $1 billion in assets under management. Here are some of the key findings:
– 26% of respondents, the largest share, believe that interest rates will have the single biggest impact on the deal environment over the next 12 months.
– 58% of respondents see market conditions for exits as being either neutral or somewhat favorable over the next 12 months, suggesting GPs are confident in a recovery but remain realistic. This is a marked decline from 84% who shared this view a year ago.
– Responding to the U.S. regional bank crisis earlier this year, 35% of respondents intend to move more towards private credit providers, a trend visible across all parts of the world.
– 94% of respondents say they are likely to consider pursuing take-privates at present, a marked departure from last year’s edition of the survey when less than half said they were likely to do so.
– 92% of GPs say that utilizing earn-outs is a strategy their firms are employing to manage the valuation gap that emerged last year in response to macro and market conditions.
Other key findings address, among other things, respondents’ assessment of the implications of the current antitrust environment, the percentage of respondents contemplating GP stake divestitures, and the percentage of respondents expecting their firms to invest in hedge fund capabilities during the coming year.
We’re taking tomorrow off in celebration of Veterans Day. Our blogs will be back on Monday. Have a safe and enjoyable holiday weekend and thanks to all who served!
– John Jenkins