The past nine months were challenging for private equity dealmaking, with buyers and sellers alike buffeted by rising interest rates, plunging valuations and economic uncertainty. While these challenges are likely to continue in 2023, prolonging sluggish deal markets, most market-watchers expect deal volume to pick up in the second half of this year.
Meanwhile, with plenty of capital ready to be deployed, private equity firms hold distinct advantages, including a track record of finding creative ways to get deals financed and executed, and in finding and capturing opportunities to create value amid disrupted markets. Meanwhile, portfolio companies are generally performing well, as fundamentals remain strong.
