Must-Know Private Equity Trends of 2024

Hi this is ZipLaw! Today we bring you the Must-Know Private Equity trends of 2024 plus how they impact law firms so you can stand out in applications and interviews.

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Here’s what we’re serving today:

• 💸 Fundraising is changing
• 🤝 New Deal Structures
• 👀 Opportunities still exist
• 👴 Lots of Cash, Aging Deals

Fundraising is changing

In short: Fundraising in private equity used to be quicker, but now it's taking longer – on average, about 19 months instead of 15. This slowdown is expected to continue in 2024, but new types of investors might get involved.

What to expect:

1. New Investors on the Block
The days of only big-time investors being involved in private equity are changing. Now, we're seeing more retail investors (those who have good money but not quite enough to meet the big investor criteria) getting a piece of the action. Private equity sponsors will continue to work with these wealthy individuals and bring them into funds, creating a broader network of investors to pursue investment opportunities.

2. More Homework, More Waiting
The market instability has made investors more cautious and they are now taking their time to really dig into where they put their money. This has led to (and will likely continue to lead to) more thorough checks and longer negotiation times. Fundraisers need to be better prepared, more transparent, and ready to provide extensive information about their business operation.

3. Politics Playing a Bigger Role
The political scene, especially in the U.S., is having a bigger impact on how and where money gets invested. Different states have different rules about investments, which can affect everything from environmentally focused funds to where pension plans put their money. A similar issue could arise in the UK with the General Election. This will be a top priority for private equity clients and they will be keen to get law firms' input on how these political developments impact their operations.

⚖️ How does this impact Law Firms?