Letter from the Editors

In our 2024 Private Equity Outlook issued at the beginning of the year, we viewed the year ahead with “guarded optimism.” From the vantage point of the third quarter, that perspective has been borne out. Private equity M&A deal activity in the United States has gathered steam, and while the market in Europe is still finding its stride, sponsors investing there are finding opportunity in certain sectors and market niches. The robust secondaries market continues to fill the gap where attractive exit opportunities are not available via the IPO market or third-party sales. Positive momentum on the dealmaking front is in turn giving sponsors hope that the fundraising environment may begin to warm.

But if market conditions are gradually becoming more stable (and favorable), the regulatory and enforcement environment is another matter. ESG-related regulations in the EU and UK are an ever-evolving landscape, while in the United States they provide the stage for increasingly polarized legislative battles. At the end of June, the U.S. Supreme Court issued two decisions with the potential to significantly upend the regulatory and enforcement environment: one holding that courts no longer must defer to an agency’s interpretation of regulations, and the other calling into question the SEC’s ability to pursue penalties through its in-house administrative proceedings. Both decisions promise to bring uncertainty and unintended consequences.

We hope you find the 2024 Private Equity Midyear Review and Outlook to be a useful summary of the many forces shaping the market as you set your agenda for the remainder of the year.