Financial Times on LinkedIn: Dealmaking slowdown leaves private equity with record unsold assets (2024)

“Private equity groups globally are sitting on a record 28,000 unsold companies worth more than $3tn, as a sharp slowdown in dealmaking creates a crunch for investors looking to sell assets. [ ] Last year, the combined value of companies that the industry sold privately or on public markets fell 44 per cent on 2022 to its lowest level in a decade. [ ] This has prompted the industry to use alternative money-raising tactics, including so-called net asset value financing — loans secured against typically highly indebted portfolio companies — and transferring companies to new internal funds. This can allow in new investors while others exit. [ ] The “secondaries” market — of private equity investors buying and selling existing stakes in funds and private equity groups moving assets from older to new funds — was another bright spot. The amount of money raised in the secondaries market nearly doubled last year, with groups including Blackstone and Lexington Partners both raising more than $20bn each.”

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James Hickey, great article thanks for posting. Things are different now in the world of private equity. It used to be all about borrowing money to buy companies and making them look good quickly for profits. But that's old news.Today, private equity folks are rolling up their sleeves. They're not just about money games anymore. They're getting more involved in how companies actually work to make them better.This year, with its challenges, has made it even more important. Private equity people are helping companies find the right people to hire, figuring out how to deal with higher interest rates, and making sure they can compete well.Instead of just hoping prices will go up, they're making sure the companies they own are making more money. It's like adding more fuel to the fire.Selling companies is not a walk in the park either. Prices are all over the place, especially in technology and energy stuff. But private equity firms need to get things done. They have money from investors that they need to use wisely.They're not waiting for deals to come to them. They're going out and finding opportunities on their own. It's like looking for treasure without waiting for a map.This year is changing how private equity works. It's showing them that being hands-on and making companies better is the way to go. The future is about being good at running companies, not just playing with money. 🌟 #PrivateEquityChanges #MakingBusinessBetter

In addition to the take-private opportunities, private equity companies will likely see a number of add-on opportunities for their platform investments and portfolio companies.#takeprivate #privateequity

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The private equity space may be experiencing a slowdown in terms of deals and exits compared to years past, but some impressively large transactions are still occurring. Check out our list featuring some of the biggest from 2023 so far: https://hubs.ly/Q01TvMPn0#privateequitydeals #takeprivate #privateequity2023

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That time has come. The private equity model has to change. #privateequity #venturecapital #strategy

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This Miserable Market Could Be a Catalyst for Private Equity Firms (via Institutional Investor): https://ow.ly/oME950PIgeX#privateequity #funds #institutionalinvestor

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This Miserable Market Could Be a Catalyst for Private Equity Firms (via Institutional Investor): https://ow.ly/hNa450PJjKr#privateequity #funds #institutionalinvestor

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Unpacking the Realities of Private Equity: A Comprehensive 6000-Word Case Study

The private equity space may be experiencing a slowdown in terms of deals and exits compared to years past, but some impressively large transactions are still occurring. Check out our list featuring some of the biggest from 2023 so far. https://hubs.ly/Q024BQf00#privateequitydeals #takeprivate #privateequity2023

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The private equity space may be experiencing a slowdown in terms of deals and exits compared to years past, but some impressively large transactions are still occurring. Check out our list featuring some of the biggest from 2023 so far. https://hubs.ly/Q01_8Y5f0#privateequitydeals #takeprivate #privateequity2023

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