Bain – Report Midyear PE Report, 2024

Private equity dealmaking experienced a slowdown in the first half of 2024, but signs indicate a possible bottoming out of the decline. While deal count has stabilized, activity remains at a low level and fundraising difficulties persist. Limited partners are pushing for more distributions and favoring certain funds for new commitments. General partners who cannot drive attractive outcomes for portfolio companies may face challenges. Despite some large deals, overall market activity is still subdued compared to historical standards due to a surplus of dry powder. While some industry participants believe in a near-term recovery, others anticipate a longer timeline for dealmaking to improve. The key issue remains the industry's low levels of distributed to paid-in capital, impacting funds' ability to attract new capital. Overall, the private equity landscape in 2024 remains uncertain, with the timing of a potential rebound in dealmaking activity still up in the air.