BAIN

&COMPANY

GlobalPrivateEquityReport2025

AboutBain&Company’sPrivateEquitybusiness

Bain&Companyistheleadingconsultingpartnertotheprivateequity(PE)industryanditsstakeholders.PEcon-sultingatBainhasgrowneightfoldoverthepast15yearsandnowrepresentsaboutone-thirdofthefirm’sglobalbusiness.Wemaintainaglobalnetworkofmorethan2,000experiencedprofessionalsservingPEclients.Ourprac-ticeismorethantriplethesizeofthenext-largestconsultingcompanyservingPEfirms.

Bain’sworkwithPEfirmsspansfundtypes,includingbuyout,infrastructure,realestate,anddebt.Wealsoworkwithhedgefunds,aswellasmanyofthemostprominentinstitutionalinvestors,includingsovereignwealthfunds,pension

funds,endowments,andfamilyinvestmentoffices.Wesupportourclientsacrossabroadrangeofobjectives:

Dealgeneration.Weworkalongsideinvestorstodeveloptherightinvestmentthesisandenhancedealflowbypro-filingindustries,screeningtargets,anddevisingaplantoapproachtargets.

Duediligence.Wehelpsupportbetterdealdecisionsbyperformingintegratedduediligence,assessingrevenuegrowthandcost-reductionopportunitiestodetermineatarget’sfullpotential,andprovidingapost-acquisitionagenda.

Immediatepost-acquisition.Afteranacquisition,wesupportthepursuitofrapidreturnsbydevelopingstrategicblueprintsforacquiredcompanies,leadingworkshopsthatalignmanagementwithstrategicpriorities,anddi-rectingfocusedinitiatives.

Ongoingvalueaddition.Duringtheownershipphase,wehelpincreasethevalueofportfoliocompaniesbysupportingrevenueenhancementandcost-reductioninitiativesandrefreshingtheirvalue-creationplans.

Exit.Wehelpensurethatinvestorsmaximizereturnsbypreparingforexit,identifyingtheoptimalexitstrategy,pre-paringthesellingdocuments,andprequalifyingbuyers.

Firmstrategyandoperations.WehelpPEfirmsdevelopdistinctivewaystoachievecontinuedexcellencebydevisingdif-ferentiatedstrategies,maximizinginvestmentcapabilities,developingsectorspecializationandintelligence,enhanc-ingfund-raising,improvingorganizationaldesignanddecisionmaking,andenlistingtoptalent.

Institutionalinvestorstrategy.Wehelpinstitutionalinvestorsdevelopbest-in-classinvestmentprogramsacrossas-setclasses,includingprivateequity,infrastructure,andrealestate.Topicsweaddresscoverassetclassallocation,portfo-lioconstructionandmanagerselection,governanceandriskmanagement,andorganizationaldesignanddecision

making.Wealsohelpinstitutionalinvestorsexpandtheirparticipationinprivateequity,includingthroughcoin-vestmentanddirectinvestingopportunities.

Bain&Company,Inc.

131DartmouthStreet

Boston,Massachusetts02116USATel:+16175722000

NetPromoter?,NPS?,NPSPrism?,andtheNPS-relatedemoticonsareregisteredtrademarksofBain&Company,Inc.,NICESystems,Inc.,andFredReichheld.NetPromoterScoreSMandNetPromoterSystemSMareservicemarksofBain&Company,Inc.,NICESystems,Inc.,

andFredReichheld.

Copyright?2025Bain&Company,Inc.Allrightsreserved.

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GlobalPrivateEquityReport2025

Contents

RecoverybyDegrees 2

PrivateEquityOutlook2025:

IsaRecoveryStartingtoTakeShape? 3

Investments 8

Exits 14

Liquidity 17

Fund-raising 25

Returns 30

FieldNotesfromtheGenerativeAIInsurgency

inPrivateEquity 33

Wanted:MarginGrowthinSoftwareInvesting 40

PE-BackedCarve-OutsUsedtoBeReliableWinners.

SoWhatHappened? 46

ThisTimeItsDierent:

TheStrategicImperativeinPrivateEquity 54

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GlobalPrivateEquityReport2025

RecoverybyDegrees

DearColleague:

Throughonelens,2024canbeconsideredtheyearofthepartialexhale.

Interestratesandinflationfinallycamedown.Economicgrowthinmanymarketsremainedstable.Inresponse,dealinvestmentvalueincreasedby37%andexitvaluemoved34%higher.Alas,fund-raisingstruckadiscordantnote,falling23%.Aswe’vementionedbefore,fund-raisingisalaggingindicatorfordealactivity.

Therealculpritbehindlacklusterfund-raisingisapersistentliquiditysituationforgloballimitedpartners(LPs).Whileexitactivityacceleratedlastyear,distributionsasaportionofnetassetvaluesankto11%,thelowestrateinoveradecade.

Positivesigns?Ratesandinflationappearpoisedtoremainstableordecreaseinmanymarkets.Dry

powderisstillmountainousandaging.GeneralpartnersarefindingnewandcreativewaystoboostLPliquidity.Moredollarsshouldflowintotheindustryfromsovereignwealthfundsandprivatewealth.Andmostimportant,returnsremainstrong.

Wewillseeifprivateequitycanavoidblackswansin2025andgetfirmlybackonthegrowthtrack.Bestwishes,

HughMacArthur

Chairman,GlobalPrivateEquity

3

PrivateEquityOutlook2025:Isa

RecoveryStartingtoTakeShape?

Dealmakingreboundedin2024,butregainingfund-raisingmomentummaytakelonger.

ByHughMacArthur,RebeccaBurack,GrahamRose,AlexanderSchmitz,KikiYang,andSebastienLamy

AtaGlance

Privateequitycaughtsometractionin2024asinvestmentsandexitsfinallyreversedtheirtwo-yeardeclines.

Fund-raising,meanwhile,laggedaslimitedpartnerskeptacheckonallocationsinthefaceofprolongedassetholdingperiods.

Whencapitalfinallystartsflowingagain,thewinnerswillbefundswithaclear,differentiatedstrategyandarecordofconsistentperformance.

Fewwouldcontestthatthepastfewyearsinprivateequityhavebeentheindustry’smostchallengingperiodsincetheglobalfinancialcrisis.Thegoodnews:Dealmakingappearstohaveturnedthecorner.

Investmentsandexitsreversedtheirdeclinesin2024,reflectingbothastrongdesireamonggeneral

partners(GPs)togetdealsdoneandanimprovedmacroeconomicenvironmenthighlightedbyslowly

ebbingcentralbankrates(seeFigures1aand1b).Dealvalueinbothcasespostedstrongerincreases

thanthenumberofdealscompleted.Butviewedhistorically(ratherthanincomparisontowhat’sturnedouttobeananomalouspeakin2021),theyearstackedupwell.

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GlobalPrivateEquityReport2025

Figure1a:Investmentsandexitspulledoutoftheirtwo-yearslide,butfund-raisingreversedcourse

Investments

Globalbuyoutdealvalue

count

Deal

5,000

4,000

3,000

2,000

1,000

0

+37%

$1,250B1,000 750 500250

0

2014

2019

2024

Exits

Globalbuyout-backedexitvalue

Exitcount

3,000

2,000

1,000

0

+34%

$1,250B1,000 750 500250

0

2014

2019

2024

Fund-raising

Globalbuyoutcapitalraised

Countoffundsclosed

–23%

$600B

1,000

4002000

2014

2019

2024

Notes:Investments—excludesadd-ons,special-purposeacquisitioncompanies(SPACs),loan-to-owntransactions,andacquisitionsofbankruptassets;basedonannouncementdate;includesannounceddealsthatarecompletedorpending,withdatasubjecttochange;Exits—includespartialandfullexits;excludesSPACsandbankruptcies;

IPOvaluerepresentsofferamountandnotmarketvalueofcompany;Fund-raising—includesclosed-end

andcommingledfundsonly;buyoutcategoryincludesbuyout,balanced,coinvestment,andcoinvestment

multimanagerfundtypes;buyoutcapitalraisedincludesonlythosefundsforwhichfinalclosedataisavailable;

excludesSoftBankVisionFund;countofbuyoutfundsclosedincludesallbuyoutfundsclosed,includingthoseforwhichthevalueoffinalfundsraisedisnotavailable

Sources:Dealogic;Preqin

Whetherthemomentumcanbuildin2025willlargelydependonmacroconditionsandpolicy.The

industryiscertainlyanxioustomakedeals,buttheyear’searlyslowdowninM&Aactivityglobally

suggeststhatthedreadedUword(uncertainty)continuestokeepmarketsonedge.Withinflationand

interestratesinthebalance,investorsarelookingforclarityamidback-and-forthsignalsregardingtariffsandothermacroissues.

Thefund-raisingenvironment,meanwhile,buckedtheupwardtrend.Buyoutfundsraised23%lesscapitalgloballythantheydidin2023.Fewerfundsclosedduringtheyear,andofthosethatdid,morethanathirdhadbeenontheroadfortwoyearsormore.Aslimitedpartners(LPs)continuedtosteerthemostcapital

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GlobalPrivateEquityReport2025

Figure1b:Therecoveryindealmakingstartedinthesecondquarter,butfund-raisingwasinsteadydeclinethroughout2024

Investments

Globalbuyoutdealvalue,quarterly

Dealcount

$400B1,250

300——1,000

200

750

500

00

100250

2021202220232024

Exits

Globalbuyout-backedexitvalue,quarterly

Exitcount

$400B600

300

100

——400

200

200

002021202220232024

Fund-raising

Globalbuyoutcapitalraised,quarterly

$200B15010050

0

2021202220232024

Notes:Investments—excludesadd-ons,special-purposeacquisitioncompanies(SPACs),loan-to-owntransactions,andacquisitionsofbankruptassets;basedonannouncementdate;includesannounceddealsthatarecompletedorpending,withdatasubjecttochange;Exits—includespartialandfullexits;excludesSPACsandbankruptcies;

IPOvaluerepresentsofferamountandnotmarketvalueofcompany;Fund-raising—includesclosed-end

andcommingledfundsonly;buyoutcategoryincludesbuyout,balanced,coinvestment,andcoinvestment

multimanagerfundtypes;buyoutcapitalraisedincludesonlythosefundsforwhichfinalclosedataisavailable;excludesSoftBankVisionFund

Sources:Dealogic;Preqin

towardthelargest,mostexperiencedfundswiththestrongesttrackrecords,liferemainedhardformostotherfunds.

Theslowdownisn’tsurprising.Fund-raisingisalaggingindicatorthatrespondstoindustrycashflows.

Theheavydrawdownsofcapitaltofeedthedealmakingbeastin2021werefollowedbyanabruptskidinexitactivitywheninterestratesspikedanddealmakingslumped.TheresultingslowdownindistributionscausedLPstocutbackonnewallocations.

Thispatternissimilartowhatwesawaftertheglobalfinancialcrisis(seeFigure2).Rapidgrowthin

assetsundermanagement(AUM)intherun-uptothecrisiswasfollowedbyaslowdowninexitssimilar

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GlobalPrivateEquityReport2025

Figure2:Thebuyoutcategoryhasaveragedaremarkable11%annualgrowthratefortwodecadesandnettedpositivelong-termcashflow

Globalbuyoutassetsundermanagement

$5T

4

3

2

1

0

14%CAGR0%

4.7

4.8

4.23.9

3.2

5%CAGR

2.32.0

2.6

29%CAGR

1.8

1.6

0.9

1.21.11.1

1.61.51.5

1.31.4

0.6

2005–24CAGR

11%

2005060708091011121314151617181920212223Asof

June24

Ratioofdistributionstocontributions

1.31.00.80.40.40.81.11.32.11.81.81.51.31.20.90.91.10.80.81.0

Notes:Buyoutcategoryincludesbuyout,balanced,coinvestment,andcoinvestmentmultimanagerfundtypes;

ratioofdistributionstocontributionsthroughQ32024;discrepanciesinbarheightsdisplayingthesamevalueare

duetoroundingdifferencesSources:Preqin;MSCI

totheonewe’veseenmorerecently.Thatproducedanegativebalanceofdistributionstocontributions,whichcausedAUMgrowthtoslowforeightyearsbeforepickingupsteamagainasbuyoutfund-raisingexploded.Itappearsnowthatgrowthhasleveledoffoncemoreasthenegativecashflowbalanceofthepastfewyearscomeshometoroost.

Persistentsluggishnessinexitvolumewillcontinuetopressuretheindustrytogenerateliquiditycreatively.GPshaveturnedtoabroadarrayofstrategiesandfinancialmechanismstoeitherreturncapitaldirectlytoinvestorsinlieuofafullexitortocurtailincrementalcapitalcallsthatwouldonlywidenthecashflow

deficit.Incredibly,30%ofthecompaniescurrentlyinbuyoutportfolioshaveundergonesomesortofliquidityevent,withtheindustryraisingatotalof$360billionviaminorityinterests,dividend

recapitalizations,secondaries,andnetassetvalue(NAV)loans.

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GlobalPrivateEquityReport2025

Still,noneofthiswillbesufficienttoalleviatethehangoverfromtheindustry’stwo-and-a-half-yearexitslowdown.Anuptickinactivityhelpedtheindustrybreakevenoncashflowin2024,butasFigure2

shows,contributionsfromLPshaveequaledoroutweighedfunddistributionsinfiveofthelastsixyears.BuyoutdistributionsasaproportionofNAVhavefallentorecordlows.

Thissuggeststheoutsizecapitalflowstheindustrygotusedtobeforethepandemicareunlikelyto

resumeinthenearfuture.Capitalwillcontinuetoconsolidateinthehandsoftopperformersandscalefundswiththemostfund-raisingclout.ThatspellsaclearmandateforGPs:Ifyoucan’tofferinvestorsadifferentiatedvalueproposition,raisingyournextfundisgoingtobeaseriouschallenge.

Top-quartilefundshavealwaysstoodoutfromlesserperformersinfund-raising,butthegaphaswidenedsubstantiallyinrecentyears.Considerthat,in2024,top-quartilefundmanagersincreasedthesizeofa

subsequentfundby53%whilefourth-quartilemanagersstruggledtoincreasefundsizeatall.This

53-percentage-pointdeltawassignificantlyhigherthanthe10-pointgaphistorically.Gapsalsoappearintimeontheroadandabilitytoreachtargetfundsize(seeFigure3).

Theconsensusamongeconomistsisthat,absentblackswans,thecyclicalheadwindsthathaveheldbackdealmakingsincemid-2022shouldcontinuetomoderateandgivedealmakers

apush.

Tryingtopredictwithanycertaintythefuturetrajectoryofinterestratesisneveragoodidea—especiallygivenongoingtradepolicyuncertainty.Buttheconsensusamongeconomistsisthat,absentblackswans,thecyclicalheadwindsthathaveheldbackdealmakingsincemid-2022shouldcontinuetomoderateandgivedealmakersapush.Ithelpsthattheindustryisgraduallyemergingfromtheshadowproducedbytheunprecedenteddealmakingspreein2021,whichpulledforwardmanydealsthatmightotherwisehave

beenavailableinsubsequentyears.

Whatwedoknowisthis:Whentherecoverydoesaccelerate(anditwilleventually),itshouldlookvery

differentfromtherecoveriesofthepast.Aswediscussin“ThisTimeIt’sDifferent:TheStrategicImperativeinPrivateEquity,”thecostofgeneratingmarket-beatingreturnsisonlygoingup,evenasfeesarein

retreat.Theindustryalsoisundergoinganumberofotherstructuralchangesthatwillsignificantlyalterthebasisofcompetitionforinvestmentopportunitiesandnewcapitalintheyearsahead.Thefutureofprivatecapitalinsomewayshasneverbeenbrighter.Butassuringaplaceamongthetop-tierperformersattractingcapitalisonlygettingharder.

Here’sacloserlookatwhathappenedin2024.

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GlobalPrivateEquityReport2025

Figure3:Successfullyraisingafollow-onfundintoday’smarketdependsonpastperformancemorethanever

Predecessorfundperformanceimpacts...

Successor’scloseyear2014–232024

Successorfundsize

Buyoutfundsizeaspercentageofpredecessorfundsize,bypredecessor'squartilerank

points(ppt)

200%100

–10percentage

–53ppt

0

3rd

4th

1st

2nd

Successor’sabilitytoreachtargetsize

Shareofbuyoutfunds(count)reachingtargetsize,bypredecessor'squartilerank

–50ppt

100%50

–16ppt

0

4th

3rd

1st

2nd

Timetoclosesuccessor

Averagetimetoclose(months)forbuyoutfunds,bypredecessor'squartilerank

+24

40

months

+9months

20

0

3rd

4th

1st

2nd

Notes:Includesbuyoutfundswithfinalcloseandrepresentstheyearinwhichtheyheldtheirfinalclose;timetocloseanalysisexcludesfundswithtimetoclosegreaterthan10years

Sources:Preqin;Bainanalysis

Investments

Aftertheworstdeclineindealmakingsincetheglobalfinancialcrisis,buyoutinvestmentvaluetooka

bouncebackin2024,increasing37%yearoveryearto$602billion,excludingadd-ondeals(seeFigure4).Easinginterestratesandgreatercomfortwiththemacrooutlookwerethechieffactorsnarrowingwhat

hadbeenayawninggapbetweenbuyerandsellerexpectations.An83%increaseinsyndicatedloanissuanceandtheongoinggrowthofprivatecreditalsohelpedgreasetheskidsforGPsanxioustoput$282billioninagingdrypowdertowork.

Whilethenumberofdealsincreased10%yearoveryeartoaround3,000,thegrowthinvaluefar

outstrippedthegrowthincountastheaveragedealsizegloballyjumpedto$849million,thesecond-highesttotalhistorically.Dealsof$1billionormoremadeup77%ofthevaluetotal.

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GlobalPrivateEquityReport2025

Figure4:Globalbuyoutdealvolumeandvaluereboundedin2024,followingtwoyearsofsharpdeclines

Globalbuyoutdealvalue,byregion

$1,200B

Dealcount5,000

1,000

1,000

719

694

800

725

533

602

495

600

486

486

438

403

367

335

400

294

239

223

303231

193

200

95

0

4,000

3,000

2,000

1,000

0

Avg.deal($M)

2005060708

256479

size

496165

09101112131415161718192021222324

121263309365484488903744

231209283361526591806849

Changeindealvalue

2024vs.2023

2024vs.5-yr.avg.

Restofworld

–44%

–64%

Asia-Pacific

33%

–6%

Europe

54%

5%

NorthAmerica

34%

–5%

Total

37%

–4%

Notes:Excludesadd-ons,special-purposeacquisitioncompanies,loan-to-owntransactions,andacquisitionsofbankruptassets;basedonannouncementdate;includesannounceddealsthatarecompletedorpending,withdatasubjecttochange;geographybasedontarget’slocation;averagedealsizecalculatedusingdealswith

disclosedvalueonly

Sources:Dealogic;Bainanalysis

NorthAmericandealvaluegrew34%offa9%increaseindealcount,whiledealvalueinEuropegrew

54%,alsoona9%upliftinthenumberoftransactions(seeFigure5).Dealsvaluedbetween$2.5billion

and$10billioncontinuedtogrowasapercentageoftotalvalueinbothregions(seeFigure6).Asia-Pacificdealvaluegrew11%onslightlyfewerdeals.Anumberofcountriesintheregionhaddouble-digitgrowth,butthatwasovershadowedbyslowergrowthinChinaandadeclineinJapan,whichsufferedbycomparisontoabreakoutyearin2023.Asrecentlyas2020,ChinarepresentedhalfofallAsia-Pacificdealvalue,butthatsharefelltojustover25%in2024.

Public-to-private(P2P)deals,likethe$8.4billionbuyoutofSmartsheetbyVistaEquityPartnersand

Blackstone,continuedtodominatethehighendofthemarket.P2Pdealsincreasedtocloseto$250billiongloballyin2024andrepresentedalmost50%ofdealsvaluedat$5billionormoreinNorthAmerica

(seeFigure7).Thisleveloftake-privateactivitymightseemcounterintuitivegiventherun-upintheUS

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GlobalPrivateEquityReport2025

Figure5:Theyearbroughtsolidgrowthindealvalueacrossregions,withEuropeseeingthebiggestbounce

NorthAmerica

Buyoutdealvalue

Buyoutcount

$600B+34%2,000

4001,500

-——————1,000

500

200

0020142024

Europe

Buyoutdealvalue

Buyoutcount

$600B+54%2,000

400

200

0

1,500

1,000

500

0

2014

Asia-Pacific

$600B400200

Buyoutandgrowthdealvalue

2024

3,000

2,000

Buyoutandgrowthcount

+11%

1,000

0

0

20142024

Notes:NorthAmericaandEurope—excludesadd-ons,special-purposeacquisitioncompanies,loan-to-own

transactions,andacquisitionsofbankruptassets;basedonannouncementdate;includesannounceddealsthat

arecompletedorpending,withdatasubjecttochange;geographybasedontarget’slocation;dealcountincludesalldeals,includingthosewithnodisclosedvalue;Asia-Pacific—includesbuyout,growth,early-stage,private

investmentinpublicequity,turnaround,andotherdeals;excludesadd-onsandrealestate;dealvalueexcludesdealswithannouncedvaluelessthan$10million;dealcountexcludesdealswithnodisclosedvalue;includesinvestmentsthathaveclosedandthoseatagreement-in-principleordefinitiveagreementstage

Sources:Dealogic;AVCJ;Bainanalysis

publicequitymarkets.ButspecialistsareclearlyfindingopportunitiestotakeadvantageofmispricedassetsintheUS,andEuropeanpublicmarketshavebeenmuchlessrobust.

Thetechnologysectorremainedprivateequity’sstaple,representing33%ofbuyoutdealsbyvalueand26%byvolume(seeFigure8).Activityalsopercolatedattheintersectionoftechandhealthcare,

includingKKR’sacquisitionofa50%stakeinhealthcareanalyticscompanyCotivitifromVeritasCapital,whichvaluedthecompanyataround$10billion.Amongothersectors,financialservicesdealvaluegrew92%yearoveryearandindustrials81%,bothbouncingbackafteraparticularlychallenging2023.

InsurancedealssuchasSixthStreet’s$5billionP2PdealforEnstarstoodout.

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GlobalPrivateEquityReport2025

Figure6:Dealvolumeandvalueincreasedformosttransactionsizes,particularlythosebetween$2.5billionand$10billion

Dealvolume

Shareofglobalbuyoutdealcount,bydealsize

100%80604020

0

23

18

744

19

12

488

24

22

849

20

15

591

21

21

903

22

16

806

2018

15

526

$1B+deals(%)Avg.deal

size($M)

Dealvalue

Shareofglobalbuyoutdealvalue,bydealsize

100%80604020

0

19

73

488

20

73

591

21

80

903

22

79

806

23

74

744

24

77

849

2018

75

526

$1B+deals(%)Avg.deal

size($M)

2024vs.2023

IMorethan$10B$5B–$10B

$2.5B–$5B

$1B–$2.5B

$0.1B–$1B

Lessthan$0.1B

0%64%89%39%19%8%

2024vs.2023

IMorethan$10B$5B–$10B

$2.5B–$5B

$1B–$2.5B

$0.1B–$1B

Lessthan$0.1B

–18%72%87%41%23%–5%

Notes:Excludesadd-ons,special-purposeacquisitioncompanies,loan-to-owntransactions,andacquisitionsofbankruptassets;basedonannouncementdate;includesannounceddealsthatarecompletedorpending,withdatasubjecttochange;geographybasedontarget’slocation;averagedealsizecalculatedusingdealswith

disclosedvalueonly

Sources:Dealogic;Bainanalysis

Acloserlookatthefactorsthatprecipitated2024’sdealmakingreboundshowsthatconditionsimprovedsubstantiallyduringtheyeardespiteongoingcrosscurrents.

Thedrypowdersituationiscertainlymaintainingpressureondealmakers.Whilethebuyoutindustry’sstockpileofunspentcapitalfellslightlyfrom$1.3trillionto$1.2trillion,thevalueofagingdrypowder

(thatheldforfouryearsorlonger)tickedupto24%ofthetotal,from20%in2022.ThatsuggestsGPsarestrugglingtofindfirst-rate,affordabletargets(seeFigure9).

Macroheadwinds,broughtonbyinflationandthesubsequentspikeininterestratessince2022,haveeasedoff,andeconomistsareexpectingcentralbankstokeepcuttingasinflationsettlesdown(seeFigure10).YetthepaceofeasingslowedintheUSoverthewinteramidstronglabormarketsanduncertaintyabouttheincomingadministration’stariffintentions.

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GlobalPrivateEquityReport2025

Figure7:Public-to-privatedealsrepresentedalmosthalfofalltransactionsinNorthAmericavaluedat$5billionormore

ShareofNorthAmericanbuyoutvalue,bydealtypeandsize(dealentryyears2014–24)

100%

80

60

40

20

0

Public-to-privatedeals’shareof

buyoutvalue(%)

$0.5B–$1B

$1B–$2B

$2B–$5B

$0.25B–$0.5B

More

than$5B

3

23

7

15

49

IPublictoprivate

Carve-out

Privatecompany

Sponsortosponsor

Notes:IncludesNorthAmericantransactionsgreaterthan$250millioninvalue;SPS-providedmedianenterprisevalueestimateusedforeachdealtype,year,andsizerange

Sources:SPSbyWithIntelligence;Bainanalysis

Still-highinterestratescontinuedtotakeachunkoutofadd-ontransactions,whichrepresented11%ofbuyoutdealvalue,vs.apeakof40%in2015.Asfinancingcoststookoff,itbecamemoreandmore

difficulttomakebuy-and-buildstrategiespencilout,andbolt-onacquisitionswerelessaffordable.

Itdidn’thelpthatassetpricescontinuedtosoar.Afterslackingoffsomein2023,theaveragedealmultipleinNorthAmericashotback7%to11.9timesearningsbeforeinterest,taxes,depreciation,and

amortization(EBITDA),anSPIbyStepStoneanalysisshows.Europeanmultiples,meanwhile,jumpedtoanewrecordof12.1timesEBITDA(seeFigure11).

Theshape-shiftinginthedebtmarketalsocontinued.LeveragedloanyieldsintheUStrackeddown1.4percentagepointsduringtheyearasratessoftenedandpriceseased.Butdebtratiosonlyresponded

slightly,climbingto4.9timesEBITDA,wellbelowprepandemiclevels.Syndicatedloanvolumegrewby83%to$110billion,butittooremainsdepressed(seeFigure12).

Traditionalbankshavemaintainedtheirfocusonscaledeals,wheresyndicationisimportantandthefeesmakeitworththeirtime.However,directlendershavebeenmore