Private Equity Deal Market Is Starting To Rebound: BluWave Data

The latest BluWave PE Industry Insights Report unveils a turning tide. PE firms are strategically responding to LP pressures and capitalizing on emerging growth opportunities as the economy appears to have achieved a soft landing.

NASHVILLE, Tenn.--(BUSINESS WIRE)--BluWave, the Business Builders’ Network that connects the private equity industry with best-in-class service providers, independent consultants, and interim executives, today released its latest Private Equity Insights Report, which indicates that the deal market is showing tangible signs of a return to growth.

"In a landscape marked by uncertainty, our latest findings reveal a private equity sector adeptly positioning for growth, mindful of improving economic signals and responsive to LP influence," stated Sean Mooney, founder and CEO of BluWave. "This is a critical juncture, with the industry proactively focusing on getting back to business."

Within the scattered noise of signals, BluWave observes how the economy, while not booming, is “good enough,” providing a stable platform for value-creating action. Inflation is ebbing, overheated labor markets are cooling, and GDP has grown for seven consecutive quarters. This steadying state encourages PE firms to look beyond any remaining uncertainties and act confidently.

Another driver of the return to growth is that LPs are increasingly vocal about their desire to receive more liquidity, advising their PE partners to sell older investments. This pressure is not just about addressing LP’s short term cash flow needs, but also about enabling LPs to make more commitments to future PE funds.

Lastly, BluWave’s proprietary data indicates that PE firms are, in fact, beginning to sell and buy again in growing numbers. The increase in buying activity is underscored by a notable surge in requests BluWave received for due diligence-related services, up nearly 40 percent in Q2 year-over-year. This is particularly true for targets in manufacturing and software, two industries that had recently fallen out of cyclical favor with investors.

"BluWave’s data suggests that private equity is actively laying the groundwork for future prosperity," Mooney added. "With a strategic eye on sectors ripe for value creation and a balanced response to LP influence, the private equity industry is charting a course toward success in the next economic growth cycle that is commencing."

This report, derived from BluWave’s proprietary data, serves as a bellwether for private equity, offering a glimpse into the strategies that will define the industry's next phase of growth. BluWave’s PE Insights Report is not only instructive for the private equity industry, but also for all proactive business builders across North America and the world.

To request a copy of the full report, please visit https://www.bluwave.net/get-insights/.

About BluWave

BluWave is the Business Builders’ Network for private equity-grade service provider needs. The company’s market network platform combines AI, technology, and data with concierge-like consultative support to expertly connect businesses with proven providers across due diligence, value creation, and prep for sale. The BluWave Vetted™ network is an invite-only ecosystem of top-tier service-providing groups and individuals. Based in Nashville, Tenn., BluWave ranks as one of America’s fastest-growing companies and today serves hundreds of leading private equity firms and thousands of proactive companies.

Visit BluWave.net to learn more.

About BluWave PE Industry Insights Report

The BluWave Private Equity Insights report is derived from an analysis of BluWave’s proprietary data involving thousands of projects across due diligence and value creation made by the private equity industry and its dealmakers as they contact BluWave for their third-party resource needs. Given that hundreds of private equity firms and their substantial pool of affiliated portfolio companies leverage BluWave for resource needs at the onset of thousands of due diligence and value creation projects*, the proprietary data captured in the BluWave PE Insights report is a market-leading indicator of both dealmaker sentiment and portfolio strategy. When paired with relevant market trends and data, the BluWave PE Insights report is a valuable empirical indication of dealmaker historical and future behavior.

*Note that BluWave defines due diligence projects with a PE firm as those that are used to help evaluate a potential investment target before an investment is made and value creation projects as those that are intended to help increase a company’s enterprise value after an investment has been made and during the holding period.