Due diligence is now more thorough and is taking longer, but this is for the best, according to Accuracy’s Christy Howard.
From your perspective, where is the PE market currently?
Christy Howard: Private equity’s cyclical nature was dramatically highlighted by the Covid-19 pandemic. After an initial downturn, deal activity surged from 2021 to late 2022, driven by an abundance of capital and a highly competitive market. However, this pace of dealmaking
was ultimately unsustainable.
With the economic challenges in 2023 (including rising inflation, interest rates and geopolitical tensions), deal activity – particularly for PE – notably decreased. Deal activity has begun to recover in 2024, fuelled by both PE and corporate M&A. This
resurgence is underpinned by record amounts of undeployed capital, which continues to fuel investor appetite.
Key trends shaping the PE landscape include a growing emphasis on technology-driven businesses, increased integration of environmental, social, and governance factors, and more flexible deal structures. These developments reflect a shift towards investments that align
with long-term sustainability goals and address evolving market dynamics.
While economic uncertainty persists, the overall outlook for PE remains positive. The sector’s ability to adapt to changing conditions, coupled with its longterm focus on value creation, positions it well to capitalise on emerging opportunities and navigate future challenges.
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