Last year was a challenging one for U.S. private equity fund sponsors and their limited partners as instability in the broader markets and their influences – geopolitical crises, inflation, and continuing recovery from Covid-related dynamics, among other things – were and remain prevalent going into the new year. However, there is plenty of room for optimism ahead in 2024, especially as the Federal Reserve System is poised to reduce interest rates, which should stoke deal activity both by calming dealmakers’ nerves and by opening up the debt markets that are necessary to support leveraged buyouts.

In an article for the Daily Journal, Private Equity global vice chair Scott Joachim, Of Counsel Jonathan Dhanawade, and associates Tatum Sornborger and Vicky Liu discuss the private equity outlook in the U.S. for the coming year.