Sector performance
Despite mounting pressure on financial sponsors to deploy capital ahead of investment period expirations, private capital deal activity did not gain momentum until mid-2024. Sector convergence intensified, with strong demand for investments in AI, data centers, financial services, health care, infrastructure, insurance, renewable energy, and businesses focused on energy transition.
The secondaries market continued its growth trajectory, providing liquidity solutions in a constrained transactional market. Consolidation of financial sponsors across the private capital spectrum persisted, driven by challenging market conditions and sponsors seeking efficiencies. The rise of private credit remained uninterrupted, solidifying its role as a cornerstone private capital strategy. Sovereign wealth funds also played an influential role in the sector, often accelerating their direct investing strategies.
Hogan Lovells activities
In 2024, our Private Capital team partnered with clients at every stage of the investment lifecycle. We developed a range of thought leadership on trending topics, including private credit, secondaries, fund and leveraged finance, ESG, cross-border investment, carried interest, and management incentives.
We hosted events across the globe, bringing together private capital investment and legal professionals to exchange ideas and challenge perspectives regarding market developments. We also delivered a three-part webinar series exploring financing throughout the fund lifecycle.