Edison shines a light
Happy New Year! With 2023 now behind us, many will be hoping that the next 12 months bring plenty of opportunities to do deals and recapture PE’s magic. Data by Edison shows that there are approximately 16 to 17,000 private equity and VC-backed firms. By contrast, the number of US public firms has dropped from 7,000 to less than 5,000 since the start of the century. As the private markets universe expands, GPs will look to shine bright like a diamond in 2024, as they seek out take-private deals, corporate carve-outs and family-owned businesses. Who knows how many ‘lightbulb’ moments could arise, as GPs get creative with their deal sourcing approach? Factor in a feeling of optimism on Wall Street that the US Federal Reserve will cut rates at some point in 2024, and…whisper it quietly, the PE industry might find itself whistling ‘let it grow, let it grow, let it grow’. Okay, bad joke – but hey it’s the New Year!