Global dealmaking revives in 2024, but remains weaker than recent years.

Driven by rising valuations, global private equity and venture capital deal activity surged in 2024, according to new data from S&P Global Market Intelligence.

The total value of deal activity rose 24.7% last year to US$639 billion, the firm reported, even as the volume of deals declined by about 6.5% year over year.

While deal value jumped from 2023, according to S&P data, it remained below the level of 2022 (US$735 billion), and was still down sharply from the US$1.17 trillion recorded in 2021.

In 2024, fundraising for private equity and venture capital deals was also up 9% in value to US$283.7 billion, although the volume of transactions was down on that side of the market. Again, fundraising remained below the levels in 2022 and 2021, US$415.3 billion and US$663.85 billion, respectively.

S&P also reported that private equity and venture capital transactions accounted for 17% of overall merger and acquisition (M&A) activity last year, which represented its highest share of M&A since 2019.

The U.S. and Canada were the leading source of private equity and venture capital M&A by deal value, the report noted, whereas Europe led in deal volume.

“The energy sector experienced the most significant surge, with private equity deals totaling US$346 million in 2024,” S&P said. “That represented a sixfold increase year over year, likely due to the increasing power requirements of artificial intelligence.”

The utilities sector led private equity-backed M&A transactions with US$606.4 million in deal value.