Preface

The Global Mid-Market¹ Private Equity report for the first half of 2024 [H1 2024] analyzes the market trends in Private Equity (PE) Merger & Acquisition (M&A) deals, in the Mid-Market, with a focus on Q1 and Q2 2024. And includes sequential analysis (half-yearly and quarterly) of Mid-Market deals from Q1 2023.

A quarterly publication of Altius², the report highlights how PE deals and operations teams differentiate themselves from their peers to generate higher returns through operational excellence. The report analyzes different Mid-Market sub-segments by region, fund-type, industry segment and deal economics.

Key Take-Aways

H1 2024 Deals at a Glance

Conclusion

The glory days of deal making are over. However, bright spots appear in deal activity in specific industries and funds. Political uncertainty in Europe was a key driver of deal activity, along with the conclusion of the election cycles and anticipated adjustment of interest rate change in the US. The M&A and Private Equity deal market in H1 2024 displayed a mix of resilience and challenges. A total of 5,126 M&A deals were reported, with PE accounting for 46% of total activity. The Mid-Market saw a slight decline of 5% in deals compared to H1 2023, mainly due to inflation and interest rate uncertainties. That said, certain industries such as Commercial & Professional Services, Software & Services and Financial Services remained 
top performers.

The end of political uncertainty in Europe and anticipated interest rate changes in the US 
were key drivers for deal activity, especially as deal sizes grew and execution times improved. While deal volume declined slightly, the focus shifted toward larger transactions, particularly in the Upper Mid-Market. Geographically, the Americas led in deal origination, followed by EMEA and APAC, with Japan seeing increased activity in Q2 2024. Operational strategies like the adoption of AI and Zero-Based Budgeting emerged as key trends, as Private Equity funds sought to optimize performance amid rising pressures from Limited Partners. These trends provide a foundation for cautious optimism heading into the second half of the year, with clear implications for operational excellence on deal-making trends in the Mid-Market segment.

Notes

      ¹ Globally, the Mid-Market segment is categorized based on annual revenue of portfolio companies, with three distinct tiers. The Lower Mid-Market (LMM) is companies with revenues between $25 million to $100 million. The Core Mid-Market (CMM) ranges from $100 million to $500 million, and Upper Mid-Market (UMM) ranges from $500 million to $2 billion.

      ² Founded in 2019, by Big Four management consultancy professionals, Altius is a leading global advisor to Private Equity funds and their portfolio companies in the Mid-Market.