Charting Positive Paths: Private Equity Envisions an Optimistic 2024 Ahead

Charting Positive Paths: Private Equity Envisions an Optimistic 2024 Ahead, In the midst of a complex and uncertain macroeconomic environment, Private Equity fund managers are expressing an optimistic outlook for the approaching year 2024. This viewpoint emanates from a comprehensive survey involving 157 fund managers and 14 European professional associations, disclosed 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 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).

Despite these hurdles, 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 hopeful sentiment, stating, "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.