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Laxman Pai, Opalesque Asia: Global private equity raised $482bn with 646 funds by Q3 2024. After two challenging years for private equity in 2022 and 2023, driven by the steepest interest rate hikes in two decades, 2024 brought relief with the start of a monetary-loosening cycle, said a study.
According to Preqin Global Report 2025: Private Equity, the global recessionary risks that concerned the market in 2024 have not materialized, with the industry appearing to be better positioned for 2025.
The third quarter fundraising was strengthened by increased interest from certain types of investors, especially non-institutional ones. Recent fund search data from Preqin shows that non-institutional investors, including family offices and wealth managers, are increasingly attracted to private equity funds, alongside insurance companies and asset managers.
"There is a record number of funds in the market, with 4,835 funds raising capital, targeting $1tn by Q3 2024. Of this, the number of funds increased by 17% during this period, but with a 14% decline in aggregate targeted capital. This trend indicates a shift toward smaller average fund size targets," said the study.
Private equity deal-making had a subdued year, with exit activity contracting sharply due to lower valuations from higher discount rates and negatively impacting the overall deals market. Even so, deal-making could still match or exceed the levels achieved in 2023.
Meanwhile, fund manager...................... To view our full article Click here
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