Top Stories of 2024: A Recap for Middle Market Growth
Looking back at 2024, it was a year where M&A dealmakers really had to get creative to make things happen. With strategics putting pressure on private equity firms to get deals done and investors exploring new strategies like NAV lending, the landscape was full of interesting developments. Let’s dive into some of the top stories from Middle Market Growth this past year.
One big trend in 2024 was the renewed momentum in corporate M&A activity. A survey by EY found that 98% of CEOs were gearing up for strategic M&A transactions, and the forecast for corporate M&A volume in 2024 was on the rise. With companies sitting on a heap of capital ready to deploy, it’s no wonder that strategics were eager to jump on board. The stage is set for a strong year of dealmaking ahead.
Infrastructure-focused private equity firms also had a standout year, with water and electricity projects taking center stage in their portfolios. With government funding and a push for sustainability, investments in infrastructure were booming. It turns out that water and electricity do mix when it comes to private equity investments.
On the topic of capital returns, limited partners in private equity funds were getting antsy in 2024. After a couple of slow years for M&A activity, LPs were no longer content to sit back and wait for the perfect market conditions. Instead, they started pressuring PE managers to sell off holdings and bring back some returns. Patience may be a virtue, but sometimes you just need to take action.
One of the new stars of the investment world in 2024 was NAV lending. This strategy allowed firms to extend the lifecycle of their investments in a challenging market. With exits hard to come by, NAV loans and other tactics became increasingly popular. It was like giving companies a little extra runway to reach their potential.
And finally, private equity firms found themselves on the other side of the table more often in 2024. As LPs grew restless with stalled returns, PE firms became targets for stake sales. It was a reminder that in the world of finance, everyone has to play both offense and defense.
These were just a few of the top stories that shaped the Middle Market Growth landscape in 2024. If you want to stay in the loop on all things related to finance and securities, consider becoming a member of the Association for Corporate Growth. Their events and resources can help you navigate the ever-changing world of investments.
