Anticipating Resilience: Private Equity Envisions a Positive Trajectory for 2024
Anticipating Resilience: Private Equity Envisions a Positive Trajectory for 2024, Navigating through a complex macroeconomic landscape, Private Equity fund managers are expressing a sense of optimism for the upcoming year 2024. The insights emerged from a comprehensive study involving 157 fund managers and 14 European professional associations, unveiled at this week's International Private Equity Market (IPEM) event in Cannes. The central theme at the 10th edition of IPEM revolves around the prospect of 2024 shaping up as a prosperous year for the industry, especially after the challenges of 2023, witnessing a 36% reduction in funds raised by startups in France (and a 45% dip in Europe according to Pitchbook).
Despite these hurdles, AlixPartners suggests that a renewed sense of optimism and a pursuit of innovative opportunities signal the potential for 2024 to witness robust deal volumes and capital deployment. Confidence levels are projected to mirror those of 2021, which marked a record year for transactions in the private equity sector.
Bertrand Rambaud, President of France Invest, echoes this positive sentiment, stating, "Following a decade of sustained growth, activity experienced a slowdown in 2023 but did not come to a standstill. The current scenario differs significantly from 2008 when the market abruptly and drastically halted. For 2024, confidence is crucial," as he declared during the inauguration of the capital investment event.
Rambaud emphasizes the resilience of the 420 French companies, highlighting, "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 outlook 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.