The Source

While prognosticators try to gauge when the Federal Reserve will lower interest rates this year, thereby making M&A more affordable and increasing dealflow, what became clear at the last Monetary Policy Meeting is that prognosticators must continue to prognosticate. Despite the European Central Bank, the Bank of Canada, and regulators in Mexico, Brazil, Sweden and Switzerland recently cutting interest rates, the Fed declined at its last Monetary Policy Committee meeting.

After a golden age in private equity, the market has faced a transitional period over the past few years, marked by a significant downturn in deals, exits, and fundraising. Bain & Company’s recent Mid-Year Private Equity Report 2024 provides a detailed analysis of the industry’s performance and offers insights into the emerging trends as the market seeks to regain momentum.

Source Talks is a series where we discuss deal origination with PE and M&A pros, in collaboration with David M. Toll.

In this episode, we speak with John Novak, Head of Investment Development and Capital Markets at Paine Schwartz, about the firm’s specific industry focused investment strategy and the importance of technological development.

Investor sentiment around private equity deal activity continues to paint a mixed picture. Economic uncertainty, higher-for-longer interest rates, and geopolitical tensions have created an environment of heightened caution. While the two-year decline in deal activity appears to be leveling off, the rebound remains sluggish.