Envisioning Positive Trajectories: Private Equity Looks Ahead to a Promising 2024

Envisioning Positive Trajectories: Private Equity Looks Ahead to a Promising 2024

Envisioning Positive Trajectories: Private Equity Looks Ahead to a Promising 2024, In the midst of a challenging and uncertain macroeconomic environment, Private Equity fund managers are expressing a hopeful outlook for the year 2024. This insight stems from an extensive study involving 157 fund managers and 14 European professional associations, disclosed at the International Private Equity Market (IPEM) event in Cannes this week. The focal point of discussions at the 10th edition of IPEM revolves around the potential for 2024 to unfold as a prosperous year for the industry, particularly in the aftermath of a demanding 2023 that witnessed a 36% decrease in funds raised by startups in France (and a 45% decline in Europe according to Pitchbook).

Notwithstanding these challenges, AlixPartners suggests that a renewed sense of positivity and the pursuit of inventive opportunities indicate the likelihood of 2024 witnessing robust deal volumes and capital deployment. Confidence levels are projected to parallel those of 2021, a record-setting year for transactions in the private equity sector.

Bertrand Rambaud, President of France Invest, echoes this positive sentiment, remarking, “After a decade of sustained growth, activity experienced a deceleration in 2023 but did not come to a standstill. The current situation differs significantly from 2008 when the market abruptly and drastically halted. Confidence is paramount for 2024,” he declared during the commencement of the capital investment event.

Rambaud underscores the resilience of the 420 French companies, emphasizing, “This is a robust industry that addresses the needs of Limited Partners (LPs) and over 8,000 companies, with the potential for at least a 50% increase in this number.” This optimistic perspective extends to the European level, supported by insights from 157 General Partners and 14 European professional associations, as unveiled in the sixth annual private equity survey conducted by IPEM and AlixPartners.