Global Private Equity and VC Markets Plunge into Darkness in 2023

The global private equity and venture capital markets experienced a significant decline in 2023, with deal value and volume at their lowest in at least five years, according to S&P Global Market Intelligence. The transaction value dropped by 34.7% year over year to $474.14 billion, and the number of deals fell from 17,549 to 12,016. In December 2023, deal value stood at $32.63 billion, down from $45.79 billion in the previous year, and the number of deals dropped to 802 from 1,560. Looking at Q4, transaction value fell to $117.66 billion compared to $136.87 billion in Q4 2022, and the number of deals dropped to 2,761 from 4,006. Asia Pacific generated the most activity at $13.80 billion, followed by the USA/Canada at $9.55 billion. Europe saw an increase in December 2023, reaching $7.94 billion from $6 billion in December 2022. The report does not provide expectations for 2024, but some experts predict a bounce as interest rates change. However, several global conflicts, including tensions in the Gulf, Ukraine, and China’s aggression towards Taiwan, may impact the market.