Dechert released its seventh annual Global Private Equity Outlook report, revealing that, despite a year marked by geopolitical tensions and economic fluctuations, successful private equity firms are adapting to the evolving environment and expressing optimism about the year ahead.
Notable key findings, based on responses from senior executives within PE firms in North America, EMEA and APAC, include:
- Election Impact: 31% of North American respondents believed that the Republican victory in the 2024 U.S. presidential election has the potential to boost portfolios, particularly for North American firms.
- Co-Investment Programs: 60% of respondents globally now offer a co-investment program; in North America, 73% of firms offer co-investments.
- Take-Private Deals: 93% of respondents are at least somewhat likely to consider take-private deals in the next 12 months, but those “very likely” to pursue such deals have dropped from 80% to 44%.
- GP Secondaries: 82% of respondents expect secondaries activity levels to remain buoyant or increase in the next two years following 4x growth in the past 5 years.
- Regulatory Scrutiny: 66% of PE firms globally expect increased scrutiny from antitrust, FDI, and other regulatory authorities to negatively impact their dealmaking plans over the next 12 months.
- GP-Stake Divestitures: 34% of global respondents are exploring GP-stake divestitures in the next two years.
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“Private equity firms are not just weathering the storm; they are strategically positioning themselves to capitalize on emerging opportunities,” Markus P. Bolsinger, co-head of Dechert’s global private equity practice, said. “The industry continues to refine itself, as evidenced by the development and expansion of private markets within the private capital universe, including GP-led debt and equity secondaries, private credit and GP-stake sales. What were once straightforward structures are now intricately sliced and diced at multiple levels, showcasing innovative and proactive strategies for navigating economic and regulatory challenges. For these complex transactions and times of heightened regulatory scrutiny, involving experienced advisors early is essential for achieving successful outcomes.”
The 2025 Global Private Equity Outlook report is available for download on Dechert’s website.
