Private Equity global vice-chair Scott Joachim spoke to Law360 about the potential for dealmaking and fundraising to pick up in 2024 as the market seemingly stabilizes after a few difficult years. 

“Despite the deal activity [last year], there still remains substantial dry powder compared to, say, five years ago,” Scott said. “Capital calls are starting to pick up so we’re seeing that momentum. Our hope is that heading into the first quarter of the year, the prices will start to stabilize and more deals will be transacted.”

He added: “When there’s a gap in relative downturns, tools such as earnouts and other contingent payments are often utilized. One tool would be to acquire less than 100% of a company, create some option value and encourage, if not require, the previous investors to take on more significant rollovers so that there is an alignment of interest in pursuing growth.”

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