The private equity sector has experienced a remarkable resurgence, with global dealmaking rebounding significantly. After two years of decline, private equity deal value increased by 14%, reaching $2 trillion in 2024, marking the third-most-active year on record for the asset class. This resurgence underscores the sector’s resilience and adaptability in navigating complex economic landscapes.
A pivotal factor contributing to this growth is the sector’s strategic embrace of technological advancements. The integration of artificial intelligence (AI) and generative AI technologies has opened new avenues for value creation, enabling firms to enhance operational efficiencies and identify lucrative investment opportunities. This technological shift not only streamlines processes but also positions private equity firms at the forefront of innovation.
Moreover, the sector has witnessed a focused shift towards specialization and value addition. Firms are increasingly concentrating on specific industries, allowing for deeper expertise and tailored strategies that drive superior returns. This trend towards sector specialization enhances the ability to navigate industry-specific challenges and capitalize on emerging opportunities.
Duke Capital plc exemplifies these positive trends within the private equity landscape. As a leading provider of hybrid capital solutions for SME business owners in the UK, Europe, and North America, Duke Capital combines the best features of both equity and debt. Since 2017, the company has offered unique long-term financing options that eliminate refinancing risk and the necessity for short-term exits. This approach provides a ‘corporate mortgage’ while aligning returns with the success of the business. By leveraging technological advancements and focusing on value-added strategies, Duke Capital plc continues to strengthen its position in the evolving private equity sector.