Depending on who you ask, 2024 could be described as either uneventful or a little too action-packed.
On the quieter side, fundraising continued its slow trudge. According to Private Equity International’s Q3 2024 Fundraising Report, fundraising in the first three quarters fell to its lowest level since 2020. Capital raising hit $589.9 billion, down from $672.5 billion a year prior, while the number of funds to close on target fell from 34 percent to 31 percent.
Exit markets also remained subdued. PE exit value was on track to hit its lowest total in five years by the end of the year, per data from S&P Global in July. The market saw exits of $155.3 billion between January and June, down 26 percent year on year, according to S&P.
The wider business environment was less muted. Interest rates slowly began to come down, after several years of high figures. Meanwhile, elections in several of the world’s major markets drove much of the year’s conversation: in the UK, a general election resulted in the country’s first major overhaul of carried interest taxation; in the US, the Trump victory was hailed as an end to market uncertainty and a possible catalyst for improved exit activity.
As these conditions will continue into 2025, it is unlikely the next year will be a quiet ride. Not to fear: as in 2024, team PEI will be here to provide all the biggest updates as they come. This year, we covered private equity’s strained relationship with the healthcare sector, what LPs think of the burgeoning continuation fund market, and how investors are trying to cut through the noise when it comes to the increasingly muddy topic of fund performance.
Our Spotlight podcast also covered a wide variety of topics, ranging from top tips from female founders to the ins and outs of launching a new fund strategy.
As we head into 2025, keep your eyes peeled for even more content straight from the heart of the LP-GP nexus.
From all of us at PEI, we wish you a safe and restful festive period. We’ll be back on 2 January.
