According to data from S&P Global Market Intelligence, the volume and value of private equity-backed megadeals increased in 2024, with 13 deals valued at $5 billion or more recorded by July 29. This is in stark contrast to the eight such transactions that were documented throughout 2023. The sum of these transactions was $123.64 billion, which is significantly higher than the $75.20 billion recorded in 2023. Despite the broader concerns in the M&A market regarding economic uncertainty, such as inflation, interest rates, and the possibility of a U.S. recession, this unexpected increase has occurred. The surge is primarily the result of private equity firms utilizing record levels of unspent capital, also known as dry powder, which amounted to $2.62 trillion on a global scale.
Several leading private equity firms, including Apollo Global Management, KKR, and The Carlyle Group, played significant roles in these megadeals, with Apollo’s $11.23 billion acquisition of a stake in Intel's Ireland venture being a standout transaction. Technology, media, telecom, and financial sectors led the way, while the U.S., Canada, and Europe were the primary regions for these high-value deals. With dry powder levels remaining robust and private credit offering additional leverage, analysts anticipate continued momentum in private equity megadeals for the remainder of 2024.
