Investec – PE Trends Report, 2024

Investec has released its 13th annual report on the state of the private equity industry, providing insights into the views of general partners (GPs) on key industry trends. The report addresses challenges such as higher interest rates and the growing importance of environmental, social, and governance (ESG) considerations in investment decision-making. The survey conducted for the report interviewed nearly 150 GPs during a period of difficult market conditions. The findings reveal that GPs expect returns and valuations to decline in the coming months, with fundraising becoming more time-consuming and deals harder to secure and complete. However, despite these challenges, the report emphasizes that the private equity model remains relevant and resilient. Although deal volumes and fundraising may not reach the extraordinary levels observed in 2021, transactions are still taking place, and GPs are successfully closing their fundraising efforts. If inflation declines and interest rates start to fall in major economies in 2024, the industry will be well-positioned to capitalize on the opportunities that arise. The report also highlights the continued support of limited partners for trusted fund managers, as evidenced by an increase in record fund closes in 2023. While it may be a difficult time for GPs, the industry is still seeing opportunities for growth. Investec hopes that the report will provide valuable insights for readers, as it has for their own PE team.