PE Pulse: key takeaways from Q4 2024

About this episode

The episode discusses the strong expectations for private equity entering 2025, highlighting key trends and insights from Q4 2024.

Private equity enters 2025 with strong expectations amid favorable market conditions. In 2024, PE firms announced US$565b in deals, a 25% increase in value and 20% in volume from the previous year. Confidence is high, with 73% of GPs expecting increased deployment activity. Factors driving this optimism include narrowing valuation gaps, increased asset availability, and improved macro visibility. Exit activity is also expected to rise, driven by secondary buyouts. Additionally, GPs anticipate a surge in IPOs and a continued focus on AI and private markets buildout. Visit https://www.ey.com/pepulse to view this quarter's summary. Key takeaways: PE firms enter 2025 with US$1.4t in dry powder; 73% of GPs expect increased deployment activity in the next six months. Supply chain issues ranked as a top concern, with 70% of GPs working with portfolio companies to assess these issues in light of proposed tariffs. GPs' top expectation for this year is an increase in IPOs, with companies in strong market positions well placed to go public.

Topics covered

• private equity
• market conditions
• investment trends

Keywords

• dry powder
• deployment activity
• supply chain issues
• IPOs
• AI
• secondary buyouts

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