Global private equity and venture capital deal activity surged by 24.7% in value in 2024, reaching $639bn, despite a 6.5% drop in transaction volume, according to a report by PE Insights citing S&P Global Market Intelligence.
The numbers reportedly reflect higher valuations and strategic investments in key sectors.
Although the 2024 figures marked a recovery from 2023, they remained below the 2021 peak, when deal values reached $1.17tn. Fundraising also grew by 9% to $283.7bn but fell short of the record $663.85bn raised in 2021.
PE and VC deals represented 17% of total M&A activity, the highest proportion since 2019. The US and Canada led in deal value, while Europe recorded the highest deal volume, highlighting the regional strengths of the PE and VC markets.
The energy sector experienced the most notable growth, with private equity deals totalling $346m – a sixfold increase from 2023 – fuelled by demand linked to artificial intelligence. The utilities sector dominated PE-backed M&A transactions, achieving $606.4m in deal value.
This positive trend underscores the resilience of PE and VC markets, even amid broader economic uncertainties. The focus on high-growth sectors such as energy and utilities reflects a strategic shift by investors to capitalise on transformative trends.
