The fundraising environment remained difficult in Q3 2023, with just $1.5 billion raised across 138 rounds in the quarter. This is the lowest activity level since 2018, and is a continuation of a steady slowdown that started in early 2022. Average investment size during the quarter remained broadly in line with historical averages, excluding the post-Covid boom, another indication that we are in the midst of a broad-based activity decline.
However, M&A activity remained surprisingly resilient, despite the broader macro sentiment. 79 transactions were announced in Q3, which is very much in line with recent levels. Private Equity firms in particular have significant capital to deploy and are actively pursuing both platform acquisitions and bolt-on’s for their portfolio companies. Corporate acquirers also remain active, although they tend to be quite disciplined when it comes to buy vs. build decisions.
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