Strengthening Buy-and-Build
Harnessing Generative AI
The Secondaries Tipping Point
Renovating Your Growth Strategy
Outlook for 2024
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Standing up to the challenge
Global Private Equity
Report 2024
OVERVIEW
In DePTH
SECTION TITLE 03
The year 2023 was one of portent. Deal value fell by 37%. Exit value slid by almost half. Fund-raising dropped across private capital, and 38% fewer buyout funds closed. Interestingly, dollar commitments in buyouts surged as a number of high-performing funds came to market. But it was truly a year of haves and have-nots. Just 20 funds accounted for more than half of all buyout capital raised.
The word for this market is stalled. The culprit was the sharp and rapid increase in central bank rates, which caused general partners to hit the pause button.
The good news? Interest rates appear to have stabilized. Record dry powder is stacked and ready for deployment. Nearly half of all global buyout companies have been held for at least four years. In short, the conditions appear to be shifting in favor of hitting the go button. We will see what 2024 brings.
Hugh MacArthur
Chairman of Bain’s Global Private Equity practice
Welcome to Bain’s fifth M&A global annual report
Our mission: Improve M&A by sharing practices of the best deal makers
Private equity continued to reel in 2023
The value of aging unexited companies hit a record high
Global buyout unrealized value
Sources: Dealogic; Preqin
Source: Preqin
Standing up to the challenge
Global Private Equity
Report 2024
Cash Becomes King Again
Looking Ahead
Deal value
Exit value
Funds closed count
$699B
$613B
722
37
%
$438B
$345B
449
44
%
38
%
2022
2023
2022
2023
2022
2023
$4T
3
2
1
0
2016
17
18
19
20
21
22
23
$3.2 trillion
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The year 2023 was one of portent. Deal value fell by 37%. Exit value slid by almost half. Fund-raising dropped across private capital, and 38% fewer buyout funds closed. Interestingly, dollar commitments in buyouts surged as a number of high-performing funds came to market. But it was truly a year of haves and have-nots. Just 20 funds accounted for more than half of all buyout capital raised.
The word for this market is stalled. The culprit was the sharp and rapid increase in central bank rates, which caused general partners to hit the pause button.
The good news? Interest rates appear to have stabilized. Record dry powder is stacked and ready for deployment. Nearly half of all global buyout companies have been held for at least four years. In short, the conditions appear to be shifting in favor of hitting the go button. We will see what 2024 brings.
