Anticipating Upbeat Trajectories: Private Equity Envisages a Bright Outlook for 2024
Anticipating Upbeat Trajectories: Private Equity Envisages a Bright Outlook for 2024, Amidst a complicated and unpredictable macroeconomic landscape, Private Equity fund managers are voicing a positive forecast for the upcoming year 2024. This perspective emerges from an extensive survey involving 157 fund managers and 14 European professional associations, unveiled at this week’s International Private Equity Market (IPEM) event in Cannes. The central theme at the 10th edition of IPEM revolves around the potential for 2024 to unfold as a prosperous year for the industry, particularly following the trials of 2023 that witnessed a 36% reduction in funds raised by startups in France (and a 45% decline in Europe according to Pitchbook).
Despite these obstacles, AlixPartners suggests that a renewed sense of positivism and the pursuit of inventive opportunities indicate the likelihood of 2024 witnessing robust deal volumes and capital deployment. Confidence levels are projected to mirror those of 2021, a record-setting year for transactions in the private equity sector.
Bertrand Rambaud, President of France Invest, echoes this optimistic 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 caters to 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.
