Private equity US market insights and trends

PE Pulse. Explore US industry market trends and what private equity leaders are focusing on in 2024.

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Third-quarter US private equity (PE) deal activity was robust with increased availability of financing.

PE deal activity recovered in 3Q24 as general partners (GPs) gained confidence in the macroeconomic environment along with the anticipation of US interest rate cuts, which occurred in September 2024. Third-quarter 2024 deal value reached roughly US$89b for transactions of US$100m or above.

Deal activity was augmented by narrowing loan spreads, which receded to multiyear lows with rising competition between banks and private credit shops. GPs raised US$20.6b in the broadly syndicated market (BSM) to finance leveraged buyouts (LBOs), with an appetite for tech assets.

Exit value only rose 4% in the first nine months of 2024 compared to the same period last year. The muted exit environment reflects that PE firms are waiting to bring their best assets to market when valuations are more favorable.

Deal activity1 witnessed an increase in its value and volume; 3Q24 has been the most successful quarter so far, reaching ~US$90b in deal value as PE firms get confident operating in higher than usual interest rate environments.


Consistent growth in deal activity is fueled by squeezed loan spreads that reached multiyear lows.


Technology sector, buoyed by interest in AI, emerged as the most favored sector in the first nine months of 2024 ‒ garnering 26% of the deal volume. Compared to same period last year, Consumer slipped to second place as PE’s interest declined due a to weakening Consumer Confidence Index, which deteriorated by 7 points to 98.7 in September from August 2024.


Exit volume showed improvement, increasing by over 27%, while the exit value remained reluctant to grow due to sponsors' hesitance to divest their portcos.


The scant distribution causing dissatisfaction among LPs.

LP satisfaction with distribution rate**


As sponsors wait for more attractive valuations, there has been an increase in financing dividends in the broadly syndicated loans (BSL) market.

Dividends paid to PE sponsors via leveraged loan market (US$b)


… and by focusing transactions in the GP-led markets to generate liquidity for LPs.

Global GP-led secondary market (US$b)#



The 10 largest funds to close in 2024 accounted to nearly half (47%) of all PE fundraising³.


Sources: Dealogic; PitchBook; EY analysis, **Jefferies H1 2024 Global Secondary Market Review, #Lazard Interim Secondary Market Report 2024; ¹ Indicates US PE transactions valued at US$100m and above; ² Others includes Telecom, Retail, Oil and Gas, Real Estate; YTD figures through September 30, 2024; ³ Fundraising analysis based on closed funds’ location.

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