Week in Review & Private Equity Trends: Look to the Stars

PE Firms Gear Up for Deal Bonanza

After a lull, private equity firms are back in the game. Blackstone, KKR, and Ares Management are forecasting record years, fueled by recent Federal Reserve interest rate cuts. Blackstone committed over $50 billion in recent quarters and plans significant acquisitions. KKR and Ares also reported substantial investments and fundraising. The industry is preparing for increased sponsor-led activities amid improved market confidence.

TLDR: Private equity is ready to party like it's 2019.

Gold's Gloomy Week

Gold experienced its worst week in three years.

Venture Capital's Liquidity Quest: Turning to Private Equity

With IPOs erring on the side of caution, venture capital firms and tech startups are seeking liquidity through private equity. Tech deals made up 28.3% of total PE deal value in Q3 2024, up from 18.7% the previous quarter. Notable acquisitions include KKR and Dragoneer Investment Group's $4.8 billion purchase of Instructure Holdings and Bain Capital's $4.5 billion acquisition of Envestnet.

Market Melt-Up

Since the recent U.S. presidential election, the market has seen a significant rally, pushing the S&P 500 above 6000 for the first time. Investors are optimistic, expecting policy benefits from Donald Trump's second term, such as lower taxes and fewer regulations.

Second Star to the Right…

SpaceX's rocket launch this week was a reminder that the private market’s sights are still aimed at the stars. Speaking of space…

Earth's 'Second Moon'

Asteroid 2024 PT5, a bus-sized "mini moon," is set to leave Earth's orbit on November 25, not to return until 2055. Spotted on August 7, it has been orbiting Earth since September 29. Catch it before it’s out of sight.

G20 Summit in Rio

World leaders convene in Rio de Janeiro, which marks the first time that the event is hosted in South America.

Paris Population Shrinks—Again
Paris is experiencing a population decrease, causing concern among city officials about the long-term implications for the city's vibrancy and economy.

• In other shrinking news, the Eiffel Tower shrinks by 6 inches in the winter due to cold temperatures.

LeBron's Brawny Merger

LeBron James's media company, The SpringHill Company, merges with Fulwell 73, bringing together major talent and investors from sports and entertainment industries.

Private Equity and Retail Investors: BFFL

Private equity firms are rolling out the red carpet for high-net-worth individuals (HNWIs). Heavyweights like HG, Ares Management, and Permira are expanding their wealth units, hiring experts to woo affluent investors. Why the charm offensive? HNWIs are expected to outpace institutional capital growth over the next decade, offering a lucrative opportunity for private equity.

To wit, several companies are preparing for public offerings, including ServiceTitan and Lendbuzz, both targeting IPOs in 2024. Investors are keeping a close eye on these developments in the tech and fintech sectors—and acting on it.

TLDR: The private equity club is getting more inclusive. Time to dust off those portfolios.