Sixty-eight percent of private equity managers believe market conditions for exits and other liquidity events will be unfavorable over the next 12 months, according to law firm Dechert’s 2025 private equity outlook released Nov. 12.
The data is based on a survey of 100 private equity executives conducted in July by Mergermarket on Dechert’s behalf. The surveyed private equity firms were based in North America (45%); Europe, the Middle East and Africa (35%); and the Asia-Pacific region (20%).
Meanwhile, the total value of global buyouts in the first three quarters of 2024 was up 47% to $479 billion, while the number of buyout transactions was up 1% in the first three quarters of the year to 6,792 compared with the same period last year.
In the next 12 months, fewer survey respondents indicated they are “very likely” to take a company private, down to 44% from 80% in the prior year’s survey. Still, 93% of survey respondents are at least somewhat likely to consider take-private deals in the next 12 months.
Sixty-four percent of North American private equity firms thought that a Democratic victory would be more beneficial for their portfolios compared with 31% that indicated a Republican victory would be more beneficial for their portfolios and the rest said neither outcome would have a more beneficial effect on the firm's current investments. Less than a majority (45%) of global managers said a Democratic win would be more favorable for their portfolios, while 38% stated that neither outcome would be more beneficial and 17% said a Republican victory would benefit their current portfolios.
