It’s essential to pay attention to industry trends, especially in private equity.

According to research from Ernst & Young, private equity firms are focusing on several key areas in 2024:

Artificial Intelligence: AI is poised to move beyond back-office automation to enterprise-scale transformation, enhancing due diligence, reporting, and value creation within portfolios.

Infrastructure: The Infrastructure Investment and Jobs Act continues to drive investment in clean energy and broadband, establishing infrastructure as a key asset class for PE firms.

Value Creation: With exit opportunities currently limited, firms will prioritize strategic and operational improvements to drive EBITDA growth and prepare for future market shifts.

Working Capital: Optimizing working capital remains crucial, with a focus on improving cash forecasting and liquidity management during extended hold periods.

Retail Market Expansion: Private equity is increasingly exploring opportunities in the retail investment space, offering resilience and diversification to investors while creating new channels for fund inflows.

Firms will expand their use of artificial intelligence, setting the stage for large-scale enterprise transformation. Many will also seek to improve operational efficiencies as they build upon a decade of rapid growth.

As deal activity picks up, firms that embrace these trends and leverage new technologies like AI will be well-positioned to capitalize on emerging opportunities in the market.