Driven by rising valuations, global private equity and venture capital deal activity surged in 2024, according to new data from S&P Global Market Intelligence.
The total value of deal activity rose 24.7% last year to US$639 billion, the firm reported on Tuesday, even as the volume of deals declined by about 6.5% year over year.
While deal value jumped from 2023, according to S&P data, it remained below the level of 2022 (US$735 billion), and was still down sharply from the US$1.17 trillion recorded in 2021.
In 2024, fundraising for private equity and venture capital deals was also up 9% in value to US$283.7 billion, although the volume of transactions was down on that side of the market. Again, fundraising remained below the levels in 2022 and 2021, US$415.3 billion and US$663.85 billion, respectively.
S&P also reported that private equity and venture capital transactions accounted for 17% of overall merger and acquisition (M&A) activity last year, which represented its highest share of M&A since 2019.
The U.S. and Canada were the leading source of private equity and venture capital M&A by deal value, the report noted, whereas Europe led in deal volume.
“The energy sector experienced the most significant surge, with private equity deals totaling US$346 million in 2024,” S&P said. “That represented a sixfold increase year over year, likely due to the increasing power requirements of artificial intelligence.”
The utilities sector led private equity-backed M&A transactions with US$606.4 million in deal value.