Private Equity Deal Market Is Starting To Rebound: BluWave Data
24 Julio 2024 - 7:28AM
Business Wire
The latest BluWave PE Industry Insights Report
unveils a turning tide. PE firms are strategically responding to LP
pressures and capitalizing on emerging growth opportunities as the
economy appears to have achieved a soft landing.
BluWave, the Business Builders’ Network that connects the
private equity industry with best-in-class service providers,
independent consultants, and interim executives, today released its
latest Private Equity Insights Report, which indicates that the
deal market is showing tangible signs of a return to growth.
"In a landscape marked by uncertainty, our latest findings
reveal a private equity sector adeptly positioning for growth,
mindful of improving economic signals and responsive to LP
influence," stated Sean Mooney, founder and CEO of BluWave. "This
is a critical juncture, with the industry proactively focusing on
getting back to business."
Within the scattered noise of signals, BluWave observes how the
economy, while not booming, is “good enough,” providing a stable
platform for value-creating action. Inflation is ebbing, overheated
labor markets are cooling, and GDP has grown for seven consecutive
quarters. This steadying state encourages PE firms to look beyond
any remaining uncertainties and act confidently.
Another driver of the return to growth is that LPs are
increasingly vocal about their desire to receive more liquidity,
advising their PE partners to sell older investments. This pressure
is not just about addressing LP’s short term cash flow needs, but
also about enabling LPs to make more commitments to future PE
funds.
Lastly, BluWave’s proprietary data indicates that PE firms are,
in fact, beginning to sell and buy again in growing numbers. The
increase in buying activity is underscored by a notable surge in
requests BluWave received for due diligence-related services, up
nearly 40 percent in Q2 year-over-year. This is particularly true
for targets in manufacturing and software, two industries that had
recently fallen out of cyclical favor with investors.
"BluWave’s data suggests that private equity is actively laying
the groundwork for future prosperity," Mooney added. "With a
strategic eye on sectors ripe for value creation and a balanced
response to LP influence, the private equity industry is charting a
course toward success in the next economic growth cycle that is
commencing."
This report, derived from BluWave’s proprietary data, serves as
a bellwether for private equity, offering a glimpse into the
strategies that will define the industry's next phase of growth.
BluWave’s PE Insights Report is not only instructive for the
private equity industry, but also for all proactive business
builders across North America and the world.
To request a copy of the full report, please visit
https://www.bluwave.net/get-insights/.
About BluWave
BluWave is the Business Builders’ Network for private
equity-grade service provider needs. The company’s market network
platform combines AI, technology, and data with concierge-like
consultative support to expertly connect businesses with proven
providers across due diligence, value creation, and prep for sale.
The BluWave Vetted™ network is an invite-only ecosystem of top-tier
service-providing groups and individuals. Based in Nashville,
Tenn., BluWave ranks as one of America’s fastest-growing companies
and today serves hundreds of leading private equity firms and
thousands of proactive companies.
Visit BluWave.net to learn more.
About BluWave PE Industry Insights Report
The BluWave Private Equity Insights report is derived from an
analysis of BluWave’s proprietary data involving thousands of
projects across due diligence and value creation made by the
private equity industry and its dealmakers as they contact BluWave
for their third-party resource needs. Given that hundreds of
private equity firms and their substantial pool of affiliated
portfolio companies leverage BluWave for resource needs at the
onset of thousands of due diligence and value creation projects*,
the proprietary data captured in the BluWave PE Insights report is
a market-leading indicator of both dealmaker sentiment and
portfolio strategy. When paired with relevant market trends and
data, the BluWave PE Insights report is a valuable empirical
indication of dealmaker historical and future behavior.
*Note that BluWave defines due diligence projects with a PE firm
as those that are used to help evaluate a potential investment
target before an investment is made and value creation projects as
those that are intended to help increase a company’s enterprise
value after an investment has been made and during the holding
period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240724817304/en/
Kyle Johnson kjohnson@bluwave.net