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By Opalesque: According to KPMG's latest quarterly analysis of global private equity activity, many global PE investors are at something of a standstill, waiting for more clarity. "Should the tariff issues get resolved quickly, we could get back to the level of activity we were anticipating heading into 2025."
Q1'25 activity lower than expected
Despite optimism entering 2025, private equity activity started more cautiously than anticipated. Proposed 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. Global investors grew wary due to concerns about trade flows, pricing volatility, interest rates, US tariff policies, and potential trade wars. Despite these uncertainties, investors maintained focus on sectors offering long-term growth potential and predictable returns.
Regional investment trends
The Americas led global PE investment in Q1'25, accounting for $287.1 billion across 1,868 deals. The EMA region experienced declines in both deal value ($109.1 billion) and count (1,555 deals), influenced by major elections and challenging economic conditions in key markets like the UK, Germany, and France.
In the ASPAC region, which saw $37.5 billion in PE deals, Japan was particularly notable with $20.2 billion-nearly matching its entire 2024 annual total of $22.8 billion. This growth reflects Japan's shifting attitude toward corporate restructuring and private e...................... To view our full article Click here
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