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Laxman Pai, Opalesque Asia: Global PE deployment fell from $463.8 billion across 4,958 deals in Q4'24 to $444.9 billion across 3,762 deals in Q1'25, revealed a study.
Despite the uncertainty, global PE investors continued to focus on sectors with long-term growth potential and predictable upsides, said the KPMG report 'Pulse of Private Equity'.
"A diversity of issues caused global PE investors to become more cautious, including concerns about trade flows, pricing volatility, interest rates, US tariff policies, and the potential for trade wars," it said.
Infrastructure continued to be a very large play for PE investors globally in Q1'25 - including both traditional infrastructure (e.g., energy transportation and storage) as well as IT and AI infrastructure - likely given the sector's ability to provide long-term stable sets of cash flows.
During Q1'25, PE investors showed interest in data centers, likely driven by growing recognition of the huge demand for processing capacity to address the needs of AI and generative AI in the years to come.
Q1'25 saw the launch of 19 new private equity funds globally in the $500 million to $1 billion range - a notable surge compared to the 65 funds of that size raised during all of 2024. This uptick reflects a broader trend of capital consolidation, with limited partners (LPs) increasingly allocating capital to a smaller pool of asset managers. The beneficiaries of this trend are primarily well-establish...................... To view our full article Click here
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