Christian Westra Offers Optimistic Outlook for Dealmaking in PE Hub

In The News
October 30, 2024

Private equity deal value in Q3 was up 24% over Q2 2024, and is expected to finish 16% higher overall this year compared to last, according to Ropes & Gray’s U.S. Private Equity Market Recap – October 2024.

Private equity partner Christian Westra discussed these results in PE Hub’s daily newsletter. “We’re seeing optimism in the market. The 50 basis point cut in September had a significant psychological effect, and many are predicting the Fed will continue cutting rates by 25 basis points in November and December – and will continue cutting rates well into 2025.”

The newsletter also noted that Q3 saw the highest quarterly number of PE exits in two years, again citing the firm’s PE Market Recap.

“Sponsors have been very focused on generating liquidity and returning cash to LPs, but it hasn’t really been until recently that we’ve started to see signs the exit market may be turning. Falling interest rates have likely played a significant role. There also seems perhaps to have been some narrowing of the valuation gap between buyers and sellers,” Christian commented.