Private equity confidence remains high despite global volatility

• Market volatility is reported as the biggest challenge to business performance.
• North American and Asia-Pacific confidence in deal-making and performance remains high while Europe is more cautious.
• Financial services (51%) and technology (47%) sectors are emerging as the most attractive.
• Funds are extending holding periods to maximize value creation, leveraging organic and external growth strategies.
• Korean PE firms are expected to continue showing strong interest in carve-out deals by conglomerates, mid-sized bolt-on acquisitions for portfolio value enhancement, and secondary deals.

11 March 2025 - Forvis Mazars in Korea, specializing in audit, tax, advisory, and outsourcing, today reveals the results of its latest global private equity (PE) study: Riding the wave of market change. Despite global volatility and concerns around market fluctuations, interest rates, and emerging technologies, the report finds that confidence in the market's future remains high with industry professionals, especially those in North America and Asia-Pacific.

Click here to download the full report.

Partner & Head of FAS at Forvis Mazars in Korea, Joong-Hwan Na commented on these latest findings: “South Korea’s M&A market, despite political uncertainties, is expected to see a modest recovery in 2025 after years of stagnation since 2021. Both Korean and global PE firms will remain key players in the Korean market. In line with global trends, Korean PE firms focus on value creation, while interest in carve-out, mid-sized, and secondary deals is expected to persist.”

Capturing insights from over 300 PE professionals, asset managers, and family offices across North America, Europe, Asia-Pacific, Africa, and Latin America, this year’s report also finds:

• Interest in mid-market funds and transactions is growing, and in the U.S., add-on deals dominate the market.
• Financial services and technology & telecommunications stand out as the top investment areas this year. This sector preference aligns with market trends favouring industries that require minimal CapEx while generating stable, recurring revenue.
• Key challenges that negatively impacted portfolio performance included market volatility and uncertainty, geopolitical instability, misalignment of interest with management, and increasing complexity of business operations.
• There’s an increased focus on mid-market funds and deals with 46% of respondents preferring <$100m portfolio company size.
• According to 60% of respondents, interest rates and inflation have impacted PE over the past year and continue to be a key concern moving into 2025.
• Active minority investors reported a higher proportion of investments that generated performance meeting or exceeding expectations both at the three-year mark and at the exit stage.
• Korean PE firms are expected to continue showing strong interest in carve-out deals by conglomerates, mid-sized bolt-on acquisitions for portfolio value enhancement, and secondary deals.

PE firms are adopting a more measured outlook for 2025. A change from their cautious optimism going into 2024, which became a relatively flat year in most markets. Ongoing uncertainty in the global economy, particularly as the market grapples with volatility, rising interest rates, and inflationary pressures, continues to influence this sector.

Regions like Asia-Pacific and North America reported a slightly different view. Confidence in deal activity and portfolio performance remains high. The change in outlook across Europe, by comparison, is understandably more reserved as firms continue to grapple with economic headwinds like regulatory risk and increasing geopolitical instability.

 -ENDS-

About the study

Forvis Mazars’ global private equity report 2025 summarises findings from the firm’s global survey, featuring insights from over 300 respondents across North America, Europe, Asia-Pacific, Africa, and Latin America. Content is based on primary market research, including interviews with private equity clients and industry experts, as well as reputable secondary data sources.

About Forvis Mazars

Forvis Mazars Group SC is an independent member of Forvis Mazars Global, a leading professional services network. Operating as an internationally integrated partnership in over 100 countries and territories, Forvis Mazars Group specialises in audit, tax and advisory services. The partnership draws on the expertise and cultural understanding of over 40,000 professionals across the globe to assist clients of all sizes at every stage in their development.

About Forvis Mazars in Korea

Forvis Mazars in Korea (Forvis Mazars Sebit Accounting Corporation) is a member of Forvis Mazars Group, a leading professional services network. Specializing in audit, tax, advisory, and outsourcing, Forvis Mazars in Korea supports local and foreign-invested companies operating businesses in Korea and globally. With expertise and cultural understanding, our 100+ professionals assist clients of all sizes at every stage of their development.

Visit http://forvismazars.com/kr to learn more.

Contact/s

Heather McMaster, Group Head of PR and Content, Forvis Mazars 
Heather.McMaster@mazars.co.uk

Rosa Mejia Banks, Group PR and Content Officer, Forvis Mazars
Rosa.Mejia-Banks@mazars.co.uk / +44 (0) 20 7063 4934

Tae-Hee Kong, MarCom, Forvis Mazars in Korea
Tae-hee.kong@forvismazars.com