TLDR:
- Private equity industry optimistic for 2024
- Increased interest in private credit and AI
Article Summary:
The S&P Global Market Intelligence 2024 Private Equity and Venture Capital Outlook shows resilience and optimism in the industry despite shifting market dynamics. Private equity executives are more optimistic about deal activity in 2024, with increased interest in private credit allocations and the use of artificial intelligence for deal sourcing and target selection. The following key highlights are mentioned in the outlook:
- Mid-tier and smaller PE firms are more optimistic for deal activity in 2024 compared to larger peers.
- 61% of LPs investing in private markets plan to increase their allocation to private credit in 2024.
- AI is expected to influence deal sourcing and target selection in the future.
- Fund managers currently prioritize personal networks for sourcing investment opportunities.
- Private equity GPs are expanding their use of private credit in deal financing.
- VC firms have concerns about LPs reducing their allocation to VC.
The survey covered a total of 370 global private equity, venture capital, and limited partner respondents across various regions. Despite macroeconomic challenges, the industry remains adaptable and poised for growth throughout 2024.
