Private equity US market insights and trends

Themes, trends and insights on the US private equity landscape. Explore what leaders are positioning for in 2024.

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PE Pulse is a quarterly global report that provides data and insights on private equity market activity and trends. The following analysis dives deeper into how US respondents are experiencing the market, along with their sentiments on how 2023 came to a close. 

Deal activity,1 after witnessing a decline in 2H22, remained resilient in 2023 despite continued macroeconomic headwinds.

Take privates remain an important part of the market. The dislocation in the stock market has played a significant role in public-to-private transactions.

Consumer overtook technology as the most favored sector for investments. Consumer sector companies remained resilient in the high inflation environment by adopting pricing and value chain strategies to offset cost increases, which made them attractive to PE investors.

% of deal volume by sector

While the exit environment remains challenging, general partners are turning to alternative liquidity options to distribute capital back to limited partners, such as continuation funds.

PE fundraising2 was resilient in 2023, with LPs inclined toward established general partners; fundraising remains a key concern for limited partners heading into 2024.

In the current macroeconomic headwinds, continuation funds are witnessing a rising interest as an alternative exit route, as traditional exit routes have contracted due to elevated interest rates and tight liquidity conditions.

FY23 fund volume by fund size range3 (n=378)

Quarterly US PE buyout capital raised with trailing four-quarter average and one-year forecast

Sources: Dealogic, Pitchbook, EY Analysis.

1Deal activity indicates US PE significant deals (i.e., deals worth US$100m and above; 2Fundraising analysis is based on closed funds’ location and includes funds with disclosed size only; 3Only funds with disclosed fund size were included for the pie-chart analysis; 2023* represents data as of December 5, 2023; Others^ include retail, oil and gas, telecom and real estate.

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