While global buyout activity grew by more than 30% from the previous year, it remained below the record levels achieved in 2021 and 2022 when interest rates were lower.
A lack of financing in the first half of the year limited the number of transactions with enterprise values exceeding $5 billion. Instead, deal flow was driven primarily by mid-market buyouts valued at between $500 million and $2 billion, with sponsors primarily focused on bolt-on acquisitions and strategic consolidations.
On the fundraising front, private equity firms faced headwinds in 2024 as Limited Partners (LPs), hampered by liquidity constraints, closely scrutinised returns before committing new capital.
Overall, global fundraising declined by more than 20% in 2024 compared to the previous year. In this environment, LPs favoured top-quartile managers and sector-specific funds, especially in technology and healthcare.
As market volatility hindered exits through initial public offerings, strategic sales and private transactions, LPs increasingly turned to the secondary market for liquidity, while general partners (GPs) explored continuation funds and other innovative exit strategies.
In 2024, ADIA’s Private Equities Department (PED) continued its integrated approach to private equity investing, acting as a capital solutions provider across directs, funds, and platforms.
The Department was able to capitalise on the shifting market dynamics in 2024, including the growth of the secondaries market, where it deployed substantial capital alongside its GP partners into attractively priced LP portfolios. Take-privates and carve-outs were also a prominent source of deal flow for PED.
In parallel, PED continued to collaborate with prominent managers to launch differentiated platforms. In 2024, it supported the launch of AGL Private Credit, which targets direct lending in the U.S. upper-middle market, Pemberton Asset Management’s NAV Strategic Financing strategy, and Polus Capital Management’s Special Situations strategy.
During 2024, PED demonstrated its versatility by investing across a broad range of sectors in line with emerging themes and trends.
In technology, PED focused on corporate carveouts and businesses benefiting from AI-related trends. Notably, it made a substantial investment in Qlik, a leading analytics and data integration software provider. Others included global digital consultancies and AI-native cybersecurity vendors, reflecting the team’s emphasis on cutting-edge innovation.
Within the healthcare sector, the Department prioritised pharmaceuticals and healthcare technology. Key investments included participating in the take-private of Dechra, a veterinary pharmaceutical company, and the acquisition of an indirect stake in Suven Pharma, which specialises in patented and generic pharmaceutical ingredients. A key highlight was the successful IPO of Galderma, a global dermatology products leader, in which ADIA has been an investor since 2019.
In industrials, PED invested alongside partners in Pye-Barker, the largest fully integrated provider of fire protection, life safety, and security services in the U.S., with significant growth potential.
PED expanded its presence in the financial sector during the year by investing in two prominent wealth management platforms: Fisher Investments, a global independent investment adviser, and Hargreaves Lansdown, the largest savings and investment platform for private investors in the U.K. Additionally, it capitalised on monetisation opportunities by partially or fully exiting positions in several companies, including Policy Expert, a U.K.- based home and motor insurance provider.
In the consumer space, PED targeted platforms and non-traditional sub-sectors, such as consumer technology, media, and restaurants, to tap into evolving global consumption trends. Investments included participating in the formation of Newland Commercial Management, which manages the largest portfolio of shopping malls in China, leading a funding round for Indian beauty retailer Purplle, and supporting the creation of a platform to invest in family-held European consumer businesses.
Looking ahead, PED will continue to deliver tailored capital solutions across sectors and actively seek monetisation opportunities, while staying agile in response to shifting market dynamics.
