Functions for the Market
Background
Apollo Global Management’s plan for a multibillion-dollar buyout fund is one sign that private equity activity may revive this year as dealmaking gains momentum. At $25 billion, Apollo’s 11th fund dedicated to private equity would be the largest yet.
Buyout funds sought to raise more capital in aggregate than vehicles in any other strategy in 2024, according to data compiled by Bloomberg. Meanwhile, acquisitions by private equity funds and initial public offerings accelerated as central banks cut rates and stock markets rallied on hopes for deregulation.
PRODUCT MENTIONS
A brisker M&A and IPO market will improve the environment for private equity funds, which need to put capital to work and realize gains. Matt Swain, head of direct placements and secondaries at Houlihan Lokey, says private equity firms are poised to reap a bonanza. Many investors are overallocated to public markets, setting up the private equity industry to pounce on a “tidal wave of deals.”
The issue
The private equity outlook trended up in 2024. The value of deals in North America rose 38%, to $227 billion, in the 12 months through Jan. 3. Europe’s grew by 16%, to $82 billion. Among the biggest transactions was BlackRock Inc.’s $12.6 billion acquisition of Global Infrastructure Partners, as the world’s biggest money manager expands into private and alternative assets.
In the fourth quarter of 2024, there was an uptick in IPOs, with $54 billion in deals, the most since the third quarter of 2022. Given the rising activity, conditions for private-equity-backed IPOs on US exchanges may be even more favorable in 2025.
To take advantage of these opportunities, investors need to track trends to understand how private equity fundraising and dealmaking are evolving this year.
Tracking
To track pending or trading IPOs, type “IPO” in the command line and choose IPO. Click Advanced Search on the red toolbar. The shortcut is {IPO SU <GO>}. First, click Offer Stage on the left. Tick Pending, Approved, Priced and Trading and hit Update. Then click Offer Type, tick Initial Public Offering and hit Update. Click on Result. Click the Time Series Tab. Set Announced to 5YR. Use the Aggregate By drop-down to select Trading Date and set the Period to Quarterly.
For more information on this or other functionality on the Bloomberg Professional Service, click here to request a demo with a Bloomberg sales representative. Existing clients can press <HELP HELP> on their Bloomberg keyboard.