Report: Private equity dealmaking resurgence gathers steam
A new report from Bain & Company finds that a rebound in private equity dealmaking is gaining momentum, with buyouts and exits reaching their second-highest values on record. The report suggests the industry is at an inflection point, where intensified competition is challenging funds to deliver differentiated value creation strategies. Bain notes a sustained upswing is in prospect for the sector.
- Private equity interest in the technology sector accounted for 23% of deal value in 2024, with B2B and SaaS companies being particularly attractive to investors. CTOs are increasingly preferred over CIOs in PE-backed firms, as their focus on product and platform development is seen as a direct driver of value and a more compelling narrative for a future exit. - For a potential CTO in a PE-backed SaaS company, technical due diligence is a critical process that assesses software architecture, scalability, security, and technical debt to mitigate risk for investors. A key focus is ensuring the technology roadmap aligns with business objectives to support the investment thesis. - AI-driven automation is a significant trend, with programmatic ad spending in the UK projected to grow by 12.6% in 2024. The fastest growth is expected in Connected TV (CTV) advertising, with a projected increase of 20.7%. - In the UK adtech landscape, programmatic spending reached approximately £30.6 billion in 2023. While the market is mature, growth areas include digital out-of-home (DOOH) and CTV, with buyers increasingly focused on supply path optimization for greater transparency and efficiency. - AI agents are being deployed by private equity firms to accelerate deal sourcing, enhance due diligence by analyzing unstructured data, and monitor portfolio companies' performance. This allows teams to focus on higher-value tasks like negotiation and strategy. - The UK fintech sector saw a significant increase in investment in 2024, reaching $7.3 billion. Notable London-based funding rounds included FINBOURNE Technology, which raised over £100 million in a Series B round. - Formula 1 is preparing for a major regulatory shake-up in 2026 with new chassis and engine rules designed to increase electrical power. Drivers have expressed mixed reactions to the new driving styles required, with some finding the regulations overly complicated. - Recent local news in London includes a blizzard warning issued for the region and concerns among workers at Nestle's ice cream plant over a potential sale. Additionally, a woman was found deceased at the side of a road near St. Thomas, prompting a police investigation.
