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In Q4 2024, private equity (PE) investments rebounded, driven by lower interest rates and tighter credit spreads compared with the previous quarter. Looking ahead, PE activity is expected to grow, supported by regulatory shifts, economic stability, and potential interest rate cuts.

The PE market experienced a strong rebound in Q4 2024, with deal activity rising 25% quarter-over-quarter. This growth was driven by lower interest rates, reduced financing costs, and renewed investor confidence, particularly following rate cuts by the Federal Reserve and pro-business expectations from President Donald Trump's election. Average deal size also rose, reflecting a shift toward high-value transactions and megadeals. Regionally, Asia-Pacific recorded the highest growth, followed by Europe and North America, while MENA witnessed a sharp decline.

PE exit activity also increased as firms capitalized on improved valuation multiples and buyer demand led by secondary buyouts. However, fundraising declined by 24% due to institutional investor caution and longer closure times compared with the previous quarter. Despite a drop in dry powder, firms accelerated capital deployment, signaling optimism for 2025 as interest rates decline and AI-driven opportunities emerge. This edition of the Global Private Equity Factbook offers insights into global PE investment activity, features the key targeted sectors, and provides an outlook for the industry in the coming quarter.