Private Equity: Optimistic Outlook for 2024 Amid Economic Challenges

Private Equity: Optimistic Outlook for 2024 Amid Economic Challenges, Despite a challenging and uncertain macroeconomic environment, Private Equity fund managers are displaying optimism for 2024, according to a study conducted among 157 fund managers and 14 European professional associations, revealed at the International Private Equity Market (IPEM) in Cannes this week. The question on everyone's mind at the 10th edition of IPEM in Cannes this week is whether 2024 will prove to be a favorable year for business. This query gains significance, especially following a challenging 2023 that witnessed a 36% drop in funds raised by startups in France (and a 45% decline in Europe according to Pitchbook). Nevertheless, AlixPartners suggests that "a renewed sense of optimism and the pursuit of more creative opportunities indicate that 2024 could represent a robust year for deal volumes and capital deployment, with confidence levels reaching those of 2021, a record year for transactions in the private equity sector."

Bertrand Rambaud, President of France Invest, shares a similar sentiment, stating, "After 10 years of sustained growth, activity slowed down in 2023 but did not come to a halt: the situation is very different from 2008 when the market suddenly and violently stopped. For 2024, one must be confident," he declared at the opening of the capital investment event.

Rambaud emphasizes the resilience of the 420 French companies, noting, "This is a robust industry that meets the needs of Limited Partners (LPs) and over 8,000 companies, with the potential for at least a 50% increase in this number." This confidence is echoed at the European level by fund managers, as indicated by the results of the sixth annual private equity survey conducted by IPEM and consulting firm AlixPartners, encompassing insights from 157 General Partners and 14 European professional associations.