PE Pulse: five takeaways from 3Q 2023

In this episode of the NextWave Private Equity podcast, Pete Witte reviews PE deal activity, which continues to accelerate while visibility into interest rate trajectories and macro volatility recede.

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PE Pulse is a quarterly report and corresponding podcast miniseries that provides analysis and insights on private equity market activity and trends. 

Visit Private Equity Pulse: Takeaways from Q3 2023 to view this quarter’s summary and infographic.  

PE deal activity continues to accelerate as firms get greater visibility into interest rate trajectories and macro volatility begins to recede. Today’s market is seeing a broader array of deal types, in contrast to the first half of this year, which was characterized by a very narrow focus on take-privates and add-on transactions.

In our survey, PE professionals were split evenly on the near-term outlook for exits. However, with moderating inflation, declining interest rates, and rising sentiment in the IPO markets, conditions are steadily improving, and firms need to be prepared to articulate their equity stories to potential buyers. 

Key takeaways:

  • There’s a broadening in the market: The value of private equity deals has been flat all year. But the number of deals has been steadily increasing.
  • The outlook for deals: With a little more clarity on macro, investors are getting more bullish on the outlook for acquisitions.
  • Exits: Market is recovering as well, but at a slightly slower pace, and there’s a little less conviction behind it.
  • The operational focus: As hold periods get extended, operational value-add becomes even more important. 

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For your convenience, full text transcript of this podcast is also available.


Episode 60


8m 56s