Deal flow poised for a surge as PE firms consider alternative deal sources in 2024

New York, January 12, 2024 – While deal flow decelerated dramatically in 2023, the tide may turn in 2024, as indicated by the SPS Private Equity Harvest Report. Ready to unload dry powder accumulated over the downturn, many firms are turning to alternative deal sources to meet capital deployment targets, including opening their strategies to buy from other sponsors.

The annual report leverages proprietary data techniques to reveal often-overlooked opportunities, analyzing PE portfolio holdings through several strategic lenses:

  • Strategy 1: Lower Market
  • Strategy 2: Upper Market
  • Strategy 3: Minority Investments
  • Strategy 4: Stranded Assets

Key findings from the 2023 report include:

  • Deal activity slowed by 22% in the first three quarters of 2023 compared to the same period in 2022.
  • Historic PE holding periods for portfolio companies are trending upward, indicating a surge of relevant target acquisitions in the months and years ahead.
  • Over 5,100 companies that originally traded to PE investors between 2012-2019 are still being held and may trade again soon.

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