PE Investment Outlook
The evolving regulatory landscape in Private Equity dealmaking, particularly the increased scrutiny on roll-up acquisitions, introduces complexity and strategic considerations. US antitrust authorities, with guidelines issued in July 2023, focus on cases where larger entities acquire smaller firms, prompting PE firms to reassess strategies considering deal size and cumulative market impact. While aimed at ensuring fair market practices, this scrutiny has encouraged PE dealmakers to conduct comprehensive due diligence upfront, turning regulatory challenges into opportunities for refining investment strategies.
Global Private Capital Dry Powder, by Fund Type ($T)
2022 vs 2017-21 avg.
3.7
Other
25% 55% 62% 57% 45% 13%
3.2
Secondaries Distressed PE Direct Lending Infrastructure
3.1
2.5
2.3
Growth
Real Estate
9%
2.0
Venture Capital
105%
1.7
Buyout
20% 39%
1.5
Total
1.4 1.4
1.2
1.2
1.1
1.1
1.1
1.1
0.9
0.6
2005 2006 2007 2008 2009 2010 44 44 43 42 41 40
2011
2012
2013
2014 2015 2016 2017 2018 2019
2020 2021 2022 33 29 29
Buyout's Share of Total (%)
37
35 34 35 36 35 36 36 35
Source: Preqin
Despite the regulatory changes, the PE industry remains with near-record-high capital, approaching $4 trillion ready to be deployed. Within this financial strength, there's a notable $17 billion reservoir in FE's active investor network, reflecting a strong appetite for strategic investments.
FE International
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