News Digest:

According to a news report, private equity funds holding a record $3.2 trillion in over 28,000 companies could soon start making deals to fulfill their commitments around returns to limited partners.  The US buyout funds also hold an additional $1.2 trillion in dry powder.

While exits took a hit in 2023 amidst portfolio values declining 44% year-on-year, dealmakers appear to be once again starting conversations amidst a higher level of confidence in the market around a global recovery kickstarting in 2024. Amidst this trend, US funds are eyeing listed companies in the UK to invest.

Takeaway:

Market analysts say these companies show valuation gaps that present robust opportunities for the PE funds to take them out of the UK, offshore them, and take them private. This also ties in well with the growing pressure on GPs from LPs to return capital as many of these present a good investible opportunity, they added. US-based private credit funds raised $123.1 billion in 2023 and in the first two months of 2024, have raised an additional $11.7 billion.

End Notes