CMS European Private Equity Study 2024

Key Findings and Insights

• PE deal activity remained stable in 2023, with 69% new investments and a notable increase in secondary buyouts.  
• TMT led sector activity at 24% followed by Life Sciences and Consumer Products
• Decline in earn-out provisions and continued preference for locked box mechanisms; high use of W&I insurance in larger deals. 
• ESG due diligence was conducted in 47% of PE deals, up from 38% in non-PE transactions. 
• Over half of the PE deals incorporated arbitration clauses, emphasizing expert resolution and confidentiality. 
• Increase in PE deals requiring FDI approval, rising to 21% in 2023 from 8% in 2022. 
• Evolution of management incentive schemes, with a rise in share options and shorter vesting periods. 

Market Outlook 

Despite economic challenges, the PE market is expected to see increased deal activity in 2024, driven by improved debt market confidence, falling inflation, and a substantial investment backlog. Mid-market transactions, operational improvements, and strategic acquisitions will likely be key focus areas.