The advisory firm report points out that 1Q25 aggregate deal value amounts to 445 billion US Dollars (-4.1%) for a total of 3760 (-24.2%) transactions
In 1Q25, global private equity activity faced a slowdown, KPMG says (press release). A Report of the advisory firm points out that the aggregate value of the funds announced, closed and completed deals in 1 Q25 amounted to 445 billion US Dollars (-4.1% from 464 billion in 4Q24) for 3760 deals (-24.2% – 4960). The Macroeconomic and geopolitical volatility that Donald Trump’s administration’s policies triggered severely impacted the EMA (Europe, Middle East, Asia) region where market operators closed 1555 deals worth 109.2 billion in 1Q25 (2184 transactions worth 170 billion in 4Q24).
In 1Q25, private equity fundraising downsized to 427.9 billion (503.3 billion in 4Q24) in line with the negative trend of the previous three quarters. However, top firms launched 19 new global vehicles of 0.5 – 1 billion which is a relevant increase from 65 funds of the same size that raised resources in the whole 2024. Private capital is consolidating as investors allocate higher amounts of money in a more restricted pool of General Partners.
KPMG report says that 1Q25 divestures are worth 269.7 billion. Should operators maintain the same pace in the coming quarters, they would exceed the 812.9 billion value for the whole 2024, but the feeling is that this will not happen.
Stefano Cervo, KPMG Partner, Head of Private Equity, explained: “In 1Q25, the investment and divestment cycle faced a general slowdown due to the high macroeconomic and geopolitical volatility that US policies triggered.
However, in 1Q25, delisting public offers started again grace to the support of private credit firms that can provide financing facilities at better conditions. In USA, NYSE-listed Walgreens Boots Alliance attracted a 23.7 billion take private offer of Sycamore Partners (see here a previous post by BeBeez) while in Japan JIC Capital, Mitsui Chemicals and Dai Nippon Printing tabled a 5.2 billion bid for acquiring Shinko Electric Industries (press release).
Cervo said that “despite the optimism of some player about Europe, a wait-and-see approach seems to prevail among operators, due to the considerable systemic uncertainties”.
The first signals of 2Q25 The first signals of 2Q25 highlighted the intense uncertainty related to new US tariff policies, with changes occurring on a frequent basis. Concerns about impacts and retaliatory actions could disrupt PE negotiations until there is more certainty on tariff strategies. The manufacturing, life sciences, consumer goods and retail sectors have a high exposure to tariff risk may bear the brunt of PE investors contraction. Other fields such as business services, healthcare and infrastructure are more resilient to tariffs and could attract interest of financial investors and sponsors.
