PE Investment Outlook The prevalence of private capital funds in the sub-$500 million size bucket is notably advantageous due to their agility and adaptability. Smaller funds can promptly respond to market changes, identify emerging opportunities, and adjust their investment strategies without the bureaucratic hurdles that larger funds often face. This flexibility contributes to a dynamic investment landscape, fostering innovation and responsiveness. In the specific context of 2023, the trend of targeting acquisitions within the sub-$500 million range remains robust - an M&A segment where FE holds a leading position for Digital Media businesses. As of September 2023, almost three-quarters of all private capital funds fall within this size range, reflecting the continued focus on the sub-$500 million acquisition range.
The substantial activity in this segment is a trend that we predict will continue well into 2024.
Private Capital Fund Count by Size Bucket
100%
75%
50%
25%
0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 2012 2011 2008 2009 2010 2023* $5B+ $1B-$5B $500M-$1B $250M-$500M $100M-$250M <$100M
Source: Pitchbook *as of September 2023
FE International
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2024 Digital Media M&A Report
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