2024 Market Year in Review: A Return to Optimism

A Tale of Two Halves

2024 marked a pivotal year for private equity, characterised by cautious optimism in the first half and accelerated activity in the second. After the challenging market conditions of 2022-2023, the industry demonstrated remarkable resilience as interest rates stabilised, and investor confidence gradually returned. For Cluer Ventures, operating across North America, Europe, and Southeast Asia, this presented unique opportunities to leverage our tri-continental positioning during a period of uneven global recovery.

Deal Activity and Market Dynamics

Transaction volumes rebounded significantly in 2024, with global announced private equity deal value reaching approximately $1.7 trillion – a 22% increase from the previous two year-decline. Though not as high as pre-pandemic levels, the recovery suggests a rebound in private equity acquisitions and exits. The increase was most pronounced in North America and Europe, while Southeast Asia showed more measured growth, creating compelling arbitrage opportunities for firms with our geographic reach.

Mid-market transactions, the cornerstone of Cluer Ventures’ investment approach, proved particularly resilient. Companies with enterprise values between $100 million and $1 billion attracted premium valuations as strategic buyers returned to the market and competition for quality assets intensified. This validated our long-standing focus on mid and high-level companies across our target regions.

Fundraising Renaissance

The fundraising environment experienced a dramatic turnaround in 2024 despite a downturn of 24% for traditionally commingled vehicles. After two years of constrained capital raising, institutional investors recommitted to private equity allocations with renewed vigor. Global fundraising reached $1.2 trillion, approaching pre-2022 levels and providing firms with substantial dry powder for deployment. In the U.S., however, private equity fundraising finished at $284.6 billion, well below the $395 billion bar set in 2023, signalling one of the worst performances this decade.

Alternative investment strategies gained particular traction, with investors seeking differentiated approaches that could navigate market volatility while delivering superior returns.

Sector Spotlight: Technology and Healthcare Lead Recovery

Technology sector investments dominated deal flow, representing 35% of total transaction value. Digital infrastructure, artificial intelligence, and cybersecurity emerged as key themes, reflecting accelerated digital transformation across all regions. Throughout 2024, the software private equity deal value reached $134.8 billion, representing a YoY increase of around 32% with nearly 930 deals.

Healthcare remained equally attractive, with demographic trends and Europe driving sustained demand for healthcare services and medical technology. In North America, five transactions exceeded $5 billion, as compared to just two in 2023 and one in 2022. Southeast Asian healthcare markets offered particularly compelling growth opportunities, with expanding middle-class populations and improving healthcare infrastructure creating substantial value creation potential.

Exit Environment Improvement

The exit landscape showed marked improvement throughout 2024, with IPO markets reopening for high-quality companies and strategic buyers returning to active acquisition programs. Trade sales became increasingly competitive, supporting premium valuations for well-positioned portfolio companies.

Continuation funds and GP-led secondaries gained mainstream acceptance, providing valuable liquidity solutions for firms managing extended hold periods. These alternative liquidity mechanisms proved essential for optimizing capital allocation and investor returns in an evolving market environment.

Looking Forward: Lessons from 2024

2024 reinforced the importance of operational excellence, strategic flexibility, and geographic diversification in private equity investing. Firms that maintained disciplined investment criteria while remaining opportunistic during market dislocations were best positioned to capitalize on the recovery. The year validated our commitment to alternative investment strategies, bespoke approach development, and true partnership models with portfolio company management teams.