US & Europe: 2024 PE Data That Will Shape 2025 Deals & Leadership

As 2025 begins, US and European private equity (PE) markets are exhibiting distinct trends. Optimism is returning, but deal activity, investor sentiment, and sector focus vary significantly. While firms continue deploying record dry powder, a new priority has emerged—executive talent as a key driver of value creation.

With larger deal sizes, more take-private buyouts, and increased cross-border M&A, investors are recognising that financial engineering alone isn’t enough. Strong leadership teams are essential to executing post-deal transformation, integrating acquisitions, and driving sustainable growth. As a result, talent strategy is becoming as critical as capital deployment in PE playbooks.

???? US Private Equity: A Market in Transition

The US PE market rebounded moderately in 2024, with deal value rising despite lower deal volume. Investors are cautiously optimistic, with larger transactions and take-private buyouts leading the activity.

?? Market Performance & Growth

• Deal Value and Volume: US PE deal value grew by 14% year-over-year to approximately $570 billion, despite a 3% drop in deal volume. ?? Ropes & Gray
• Bigger Deals Dominate: The share of $1B+ deals increased, and average deal size rebounded after two years of decline. ?? JD Supra As firms prioritise larger transactions, post-acquisition success depends on strong leadership teams to integrate operations and execute strategic growth plans. Investors are increasingly evaluating leadership capabilities alongside financial performance when making investment decisions.
• Take-Private Buyouts Surge: Firms used dry powder to acquire undervalued public companies, contributing to a rise in take-private buyouts. ?? JD Supra

?? Investor Sentiment & Dry Powder

Investor confidence is strengthening, driven by high dry powder levels and expectations of rate cuts. However, uncertainty around macroeconomic conditions and interest rates continues to delay some dealmaking. The strong capital reserves suggest that once there is more economic clarity, M&A activity could accelerate significantly.

• 73% of General Partners (GPs) Expect to Increase Deal Deployment in 2025. ?? EY
• $1.1T+ in Uninvested Capital Remains in US PE Funds, despite a slight dip in 2024. ?? JD Supra
• Investors Await Interest Rate Clarity Before Ramping Up Dealmaking. ?? JD Supra With $1.1T+ in dry powder, firms are not only hunting for undervalued assets but also focusing on the talent needed to drive returns. Many PE firms now include leadership assessments as part of due diligence to ensure their portfolio companies have the right executives to execute transformation plans.

?? Notable US Transactions

These large-scale transactions highlight a renewed appetite for major deals, particularly in infrastructure, technology, and insurance. But capital alone isn’t enough—success will depend on the leadership teams guiding these businesses forward. More firms are proactively planning for executive transitions, ensuring that newly acquired companies have the right talent to deliver post-deal value creation.

• Home Depot Acquired SRS Distribution for $18.3B, one of the largest exits. ?? Ropes & Gray
• Truist Insurance Brokerage Was Taken Private for $15.5B (Clayton, Dubilier & Rice-led consortium). ?? Ropes & Gray
• Other Major Buyouts: BlackRock ($14.2B - Global Infrastructure Partners), Silver Lake ($13B - Endeavor Group), KKR/Veritas Capital ($10B - Cotiviti). ?? Ropes & Gray

???? European PE: Stronger Growth & Transatlantic Activity

After two slow years, European PE bounced back in 2024, with higher deal volume and value. US firms played a key role in cross-border acquisitions, driving major buyouts on the continent.

?? Market Growth & Deal Trends

The significant increase in European PE deal activity signals a strong recovery after a sluggish period. As deal volume rises in Europe, firms are also focusing on leadership transition and management team optimisation. With increased cross-border activity, finding executives who can manage cultural and operational complexities is becoming a priority for investors.

• European PE Deal Value Grew 27.5% YoY, with deal count up 11.5%. ?? Cleary Gottlieb
• Median Deal Size Rose 40%, signalling a return of megadeals. ?? Cleary Gottlieb
• Easing Inflation & Interest Rates Helped Narrow Valuation Gaps, spurring transactions. ?? Cleary Gottlieb

???? Sector Highlights

The shift toward growth-oriented sectors like technology, energy, and professional services reflects a broader strategy by PE firms to invest in scalable, high-demand industries rather than purely relying on cost-cutting and restructuring. In these high-growth industries, leadership expertise is just as critical as capital. PE firms are placing greater emphasis on securing experienced executives who can drive innovation, manage rapid scaling, and navigate sector-specific complexities.

• Tech & Energy/Infrastructure were the top-performing sectors. ?? Reuters
• Professional Services Saw Major Deals, such as Cinven's acquisition of Grant Thornton UK and Apax's buyout of Evelyn Partners. ?? Cleary Gottlieb

?? Major European PE Transactions

The resurgence of large buyouts in Europe is a strong indicator that capital is flowing back into the region, with both local and international investors taking advantage of attractive valuations and strategic acquisition opportunities.

• Sanofi’s Consumer Health Unit Acquired by CD&R for €16B ($17.4B). ?? Reuters
• Nord Anglia Education Bought for $14.5B (EQT-led consortium). ?? Reuters
• Evri (UK logistics) Sold to Apollo for ~€3.2B, showing strength in large secondary buyouts. ?? Cleary Gottlieb

?? US vs. Europe: The Cross-Border Surge

The rise in cross-border dealmaking, particularly by US firms acquiring European assets, underscores the attractiveness of European valuations and strategic industry opportunities.

Cross-border acquisitions introduce leadership challenges, from cultural alignment to operational efficiency. More PE firms are conducting talent evaluations early in the deal process to ensure management teams can execute global growth strategies.

• 54% of European Public-to-Private Buyouts (€1B+) Executed by Transatlantic Sponsors: In 2024, 54% of public-to-private (P2P) deals in Europe valued over €1 billion were executed by large-cap transatlantic sponsors, including firms like Blackstone, Brookfield Asset Management, and KKR. rwbaird.com
• Europe as the Largest Destination for Global Cross-Border Capital: In the first half of 2024, Europe stood as the largest destination for global cross-border capital, with private capital emerging as a crucial driver. The logistics and residential sectors remained prime targets for investors. knightfrank.com

?? Talent & Leadership: The #1 Value Creation Lever

As PE strategies evolve, the focus on talent and leadership is becoming increasingly important for value creation in portfolio companies.

Beyond financial engineering, PE firms are increasingly viewing leadership strength as the defining factor for portfolio success. According to a Teneo study, leadership contributes an average of 53% of investment returns in private equity deals. Additionally, research from Cortado Group highlights that 75% of PE value creation is linked to talent—reinforcing the growing role of executive leadership in driving performance.

?? What’s Next for PE in 2025?

• US Dealmaking Expected to Rebound, Driven by Rate Cuts & Liquidity Improvement: As dealmaking picks up, securing top-tier leadership will be just as important as finding the right assets. Investors who prioritise executive talent strategy will be better positioned to accelerate growth and deliver outsized returns.?
• Europe Remains a Buyer’s Market, with Diverse Investor Activity: Attractive valuations continue to make Europe a buyer’s market, with US firms remaining highly active but competing alongside local and global investors. Strategic talent acquisition is playing an increasing role in cross-border deals, where leadership alignment is key to successful integration.?
• Talent Strategy is a Critical Growth Lever: According to EY’s 2023 Global Private Equity Survey, 76% of large PE firms cite talent retention as a top priority, while 60% of mid-sized firms emphasise hiring the right leadership teams to execute value-creation plans. With record dry powder still available, firms are investing more in executive talent to drive post-deal success.

Final Thoughts: Leadership as a Competitive Edge in PE

As PE enters a new phase of dealmaking, success will depend on more than capital deployment—it will require proactive leadership strategy. Firms that embed talent into their investment approach will be best positioned to drive value creation and navigate complexity.

The most successful PE-backed businesses won’t just buy and build—they’ll hire and lead their way to stronger returns.

?? How is leadership shaping value creation in private equity?

With dealmaking back on the rise, firms that prioritise executive talent will gain a competitive edge. Share your thoughts in the comments.

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Renovata is a global executive search and private equity advisory firm, partnering with leading investors and their portfolio companies to place transformational leaders. With deep expertise in C-suite and board-level hires, we work across technology, business services, industrial, and consumer sectors. Trusted by 50+ of the top 100 PE and growth equity firms, we provide strategic hiring solutions that drive value creation.

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