Dechert Spots Strategic Shifts and Optimism for 2025 in Private Equity Report

The 2025 Global Private Equity Outlook provides a view into what dealmakers need to know as they navigate a dynamic investment landscape and prepare for future opportunities.

NEW YORK, Nov. 12, 2024 /PRNewswire/ — Dechert LLP announced today the release of their 7th annual Global Private Equity Outlook report. This latest edition of the report provides a comprehensive analysis of the private equity market, revealing that despite a year marked by geopolitical tensions and economic fluctuations, successful private equity firms are adapting to the evolving environment and expressing optimism about the year ahead.

Notable key findings, based on responses from senior executives within PE firms in North America, EMEA, and APAC, include:

Election Impact: 31% of North American respondents believed that the Republican victory in the 2024 U.S. presidential election has the potential to boost portfolios, particularly for North American firms.
Co-investment Programs: 60% of respondents globally now offer a co-investment program; in North America, 73% of firms offer co-investments.
Take-Private Deals: 93% of respondents are at least somewhat likely to consider take-private deals in the next 12 months, but those “very likely” to pursue such deals have dropped from 80% to 44%.
GP Secondaries: 82% of respondents expect secondaries activity levels to remain buoyant or increase in the next two years following 4x growth in the past 5 years.
Regulatory Scrutiny: 66% of PE firms globally expect increased scrutiny from antitrust, FDI, and other regulatory authorities to negatively impact their dealmaking plans over the next 12 months.
GP-Stake Divestitures: 34% of global respondents are exploring GP-stake divestitures in the next two years.

“Private equity firms are not just weathering the storm; they are strategically positioning themselves to capitalize on emerging opportunities,” said Dr. Markus P. Bolsinger, co-head of Dechert’s global private equity practice. “The industry continues to refine itself, as evidenced by the development and expansion of private markets within the private capital universe, including GP-led debt and equity secondaries, private credit and GP-stake sales. What were once straightforward structures are now intricately sliced and diced at multiple levels, showcasing innovative and proactive strategies for navigating economic and regulatory challenges. For these complex transactions and times of heightened regulatory scrutiny, involving experienced advisors early is essential for achieving successful outcomes.”

As we move into 2025, the trends highlighted in the report emphasize the industry’s commitment to finding innovative solutions to sustain investment cycles and provide liquidity to investors, even in the face of challenges. The private equity market continues to evolve, demonstrating its resilience and capacity to thrive in an ever-changing landscape.

The 2025 Global Private Equity Outlook report is available for download on Dechert’s website.

About Dechert’s Global Private Equity Practice

Dechert has been at the forefront of advising private equity firms for 40 years and ranked among the top law firms for U.S. and Global PE Buyouts and Global M&A by Bloomberg, Mergermarket and Refinitiv. With more than 350 private equity and private investment clients, we have unique insights into how the industry has evolved and where it’s going next. Our global team advises private equity, private credit and other alternative asset managers on flexible solutions at every phase of the investment life cycle.

About Dechert

Dechert is a global law firm that advises asset managers, financial institutions and corporations on issues critical to managing their business and their capital – from high-stakes litigation to complex transactions and regulatory matters. We answer questions that seem unsolvable, develop deal structures that are new to the market and protect clients’ rights in extreme situations. Our nearly 1,000 lawyers across 20 offices globally focus on the financial services, private equity, private credit, real estate, life sciences and technology sectors.

Methodology: In July 2024, Mergermarket, on behalf of Dechert LLP, surveyed 100 senior-level executives at PE firms based in North America (45%), EMEA (35%), and Asia-Pacific (20%). In order to qualify for inclusion, the firms all needed to have $1bn or more in assets under management (AUM) and respondents could not be first-time fund managers. The survey included a combination of qualitative and quantitative questions, and all interviews were conducted over the telephone by appointment. Results were analyzed and collated by Mergermarket, and all responses are anonymized and presented in aggregate.

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