PE deals plummet; global IPOs slump; real estate M&A hits 13-year low

In this edition of?Insight Weekly, we take a close look at the continued downtrend in global private equity and venture capital deal activity. Deal value and volume in 2023 were at their lowest in at least five years. Transaction value declined 34.7% year over year to $474.14 billion, while deal count fell to 12,016 from 17,549, according to S&P Global Market Intelligence data. Multiple factors including inflationary headwinds, rising interest rates and geopolitical unrest led many investors to step back from making deals last year. The total value of global venture capital funding rounds in 2023 came in at $260 billion, a 40.3% decrease from the full-year total of $435.72 billion in 2022. Deal volume amounted to 15,834 in 2023, down 31.9% from 23,251 in 2022.

Initial public offering activity ended 2023 on a slow note, marking the slowest year for new market debuts since 2019. There were just 370 IPOs launched globally in the fourth quarter of 2023, down from 417 in the fourth quarter of 2022 and 921 in the same period of 2021, according to the latest S&P Global Market Intelligence data. This was the slowest fourth quarter since 2012, when there were 285 IPOs worldwide. A total 1,429 IPOs were launched globally in 2023, the lowest number since 2019, a nearly 16% drop from 2022 and just over 40% of the amount launched in 2021.

Announced acquisitions targeting Europe-based real estate companies between January and December 2023 were at their lowest annual number since at least 2010. Deal count was down to 216 from 306 in 2022. Transaction value declined more than 50% year over year to $10.40 billion from $21.24 billion, according to S&P Global Market Intelligence data. Real estate M&A volume and aggregate value in the region slowed for a second straight year in 2023.

Private Equity Deals in Focus

Global private equity deal activity plunges in 2023

The 2023 results for both deal volume and value were the lowest in at least five years, S&P Global Market Intelligence shows.

—Read more on S&P Global Market Intelligence .

Global venture capital investments continue downtrend in December 2023

The value and volume of venture capital funding rounds globally were the lowest in any December since at least 2020, according to S&P Global Market Intelligence data.

—Read more on S&P Global Market Intelligence .

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Deep Dives

In-depth features looking at the impact of major news developments in key industries.

Financials

UK banks face earnings pressure in 2024 as rate tailwinds die down

Banks' lending income and margins are set to weaken this year amid continued product repricing and growing competition for customers, while loan loss provisions are set to rise as slow economic growth hits asset quality, analysts said.

—Read more on S&P Global Market Intelligence .

US credit unions kick off 2024 with record-breaking bank buys

The latest credit union-bank deal broke a number of records, including the largest bank target ever and the largest credit union buyer ever.

—Read more on S&P Global Market Intelligence .

US regional banks' Q4'23 earnings plagued by muted loan growth, worsening credit

Among the 69 publicly traded banks with assets between $10 billion and $100 billion and normalized earnings per share estimates from at least five analysts, only 10 are expected to post higher quarter-over-quarter EPS.

—Read more on S&P Global Market Intelligence .

Financials Research: Banks battle earnings pressures as liquidity remains king

Even with interest rates likely near their peak, bank net interest margins have not quite bottomed yet.

—Read more on S&P Global Market Intelligence .

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Insurance

P&C carriers make up majority of US insurers placed in receivership in 2023

Regulators placed 18 insurers into liquidation or rehabilitation in 2023, compared with eight companies in 2022.

—Read more on S&P Global Market Intelligence .

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Real Estate

European real estate M&A hits 13-year low in 2023

There were only 216 announced acquisitions targeting Europe-headquartered real estate companies between January and December 2023, the lowest annual tally since at least 2010.

—Read more on S&P Global Market Intelligence .

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Credit and Markets

Inflation drifts up as fears of 2nd wave of higher prices mount

The consumer price index jumped 3.3% from December 2022 to December 2023.

—Read more on S&P Global Market Intelligence .

Worldwide IPO activity marks slow end to 2023

There were just over 1,400 IPOs launched globally in 2023, compared to the nearly 3,300 launched in 2021.

—Read more on S&P Global Market Intelligence .

ASEAN economic outlook in 2024

The near-term economic outlook for the ASEAN region in 2024 remains positive, supported by the continued expansion of domestic demand in a number of large Southeast Asian economies.

—Read more on S&P Global Market Intelligence .

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Energy and Utilities

RRA Research: Small transactions maintain flow of water M&A in 2023

The total transaction value of water and wastewater systems acquired in 2023 fell short of recent years. However, long-term consolidation trends remain positive.

—Read more on S&P Global Market Intelligence .

Digital Power Optimization plans 100 MW of behind-the-meter datacenters in Texas

The datacenters will be sited at six wind farms and used for bitcoin mining or artificial intelligence training.

—Read more on S&P Global Market Intelligence .

Majority of large-cap US, Canadian power utilities saw market cap shrink in 2023

The median market capitalization of the 20 largest publicly traded electric and multi-utilities companies in the US and Canada decreased 6.7% year over year, as 16 of the 20 selected companies posted year-over-year declines in value.

—Read more on S&P Global Market Intelligence .

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Technology, Media and Telecommunications

451 Research: The key challenges of modern work

Work is going through a huge transformation, and businesses face multiple hurdles in reimagining how work happens. Collectively, they demand a radical rethinking. Here, we discuss the top 15 challenges that organizations face.

—Read more on S&P Global Market Intelligence .

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Metals and Mining

Higher uranium prices may drive 'sticker shock' amid tight market

Uranium prices continue to climb amid low supplies on spot markets and bullishness over the prospects for the nuclear fuel amid the energy transition.

—Read more on S&P Global Market Intelligence .

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The Week in M&A

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BlackRock to buy GIP in $12.55B deal for energy infrastructure giant

Read on S&P Global Market Intelligence

Direct lithium extraction players to draw wave of M&A from battery supply chain

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Deal Profile: Illinois-based Arcola First Bank to merge with Peoples Bank & Trust

Read on S&P Global Market Intelligence

European bank M&A tracker: Deal activity falls 36% in 2023

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Oil, gas deal tracker: Megamergers drive deal value to record $151B in Q4'23

Read on S&P Global Market Intelligence

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The Big Number

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Trending

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