The private equity industry has faced a number of challenges over the last year: we have seen interest rate rises in response to greater inflationary pressure including increasing labor, transport, and energy costs, the unwinding of government support put in place to assist businesses and households in response to the COVID-19 pandemic, and ongoing political and economic upheavals. These events have resulted in a slowing of deal activity as market participants have sought to assess the new environment.
Throughout this period we have also seen new business modelsand opportunities driven by changes in technology and environmental, social, and governance (ESG) considerations. There remains a continued appetite for investment technology–related businesses, including those facing artificial intelligence developments, infrastructure to support the rollout of new energy delivery, and communications, among others, and we expect these trends to continue into 2024 with a range of potential carveout opportunities arising.
In this report, we will preview what lies ahead for 2024 and explore a sampling of recent developments in foreign investment control and proposals to regulate sports investments as well as tax highlights relating to the global minimum tax rate, carried interest, and tax transparency.