Bloomberg report – Private Equity and Venture H1

Key learnings:

1. In 2024, 45% of buyout and growth investments were concentrated in technology and healthcare sectors. These sectors continue to attract significant attention due to their potential for growth and resilience, driven by innovations in AI and healthcare technology.
2. Despite a $435 billion drop in AUM in 2023, there is optimism for 2024. Buyout funds are projected to recover from a 39% drop in fundraising between Q4 2023 and Q1 2024. Venture capital is also showing signs of a comeback, especially AI-led funds, which have played a key role in driving capital raise efforts this year.
3. Across buyout, growth and venture strategies, returns have been highly variable. For example, venture funds saw a mean IRR of around 15%, while buyout funds exhibited a wide distribution of IRRs between 0% and 35%. The volatility across these strategies highlights differing risk-return profiles, with buyout funds demonstrating lower volatility compared to growth funds.

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