Pitchbook's US Outlook 2024
Trends in the US investment market
Private market sentiment
Recent GDP figures suggest that the economy is on track for a soft landing, which is good news for the private markets. This positive trend could bring hope to investors and potentially lead to an increase in deal activity. With the uncertainty of a downturn removed, there may be more confidence in making investments and pursuing opportunities. The engineering of a soft landing could provide stability and a favourable environment for growth in the private markets. This could be a promising sign for the future of the economy and could lead to increased activity in the deal-making space.
The impact of inflation on investors
The increase in rates has had an interesting impact on investors. With rates rising, allocators may feel less pressure to seek out higher-risk assets to meet their return targets. While this may provide some relief for those looking to play it safe, it could have a negative effect on flows into venture capital (VC) and high-yield debt investments.
VC investments and high-yield debt are typically considered higher risk, higher reward options, and may not be as attractive to investors when safer options are available. This shift in investor behaviour could potentially impact the flow of funds into these areas, leading to a decrease in investment in VC and high-yield debt. Ultimately, the impact of the increase in rates on these sectors will depend on how investors react and adjust their strategies moving forward.
The impact of inflation on consumers
The possibility of three rate cuts in 2024 shows that the Fed is prepared to act if necessary to support economic growth and stability. Overall, while there are still challenges ahead, these recent developments suggest that the Fed is closely monitoring the situation and is ready to respond appropriately to address any potential risks.
Unemployment
A low unemployment rate also means that more people have stable income, which can help to mitigate the impact of rising prices on consumer spending. Additionally, when people are employed, they are more likely to make big-ticket purchases like cars and homes, which can help to stimulate economic growth. Overall, the stability of the job market is a crucial factor in preventing a full-blown recession and maintaining economic stability.
What does this mean for the US private equity and VC market
The Pitchbook PE Barometer is a factor-based framework that estimates PE fund returns based on key economic and market variables. Historically, it has tracked actual returns reasonably well. However, from late 2020 through 2021, PE fund returns were considerably higher than the implied returns from the PE Barometer. This performance gap reversed in early 2022 as fund managers gradually marked their valuations to market.
Since the anomalous years of 2020 and 2021, VC has fallen back as other strategies like private debt, natural resources, and infrastructure—traditionally laggards—recently landed in the top half.
What does this mean for CFO’s looking for their next opportunity in a US investor-led business?
Find your next investor-led CFO or Executive Finance role with Marks Sattin Executive Search
At Marks Sattin Executive Search, we work with a wide range of investor-led and privately owned businesses across all sectors and locations. With over 30 years of experience, we have helped more than several professionals find their next exciting opportunity.
Apply for an available CFO or Executive Finance job with us today or register your details and we will contact you at the earliest convenience.
Signup to receive the latest discipline specific articles
Related articles
Teaser
Finance & AccountingContent Type
General
25/04/24
Summary
Over the years, we have developed a strong reputation as a leading Senior Finance and Executive Search firm. We’re proud to have well-established teams of finance and accounting recruitment cons
by
Neil Burton
Teaser
GovernanceContent Type
Fintech
18/04/24
Summary
The role of risk and compliance in financial services As a sizeable, growing portion of the financial services sector, risk and compliance play a vital role in ensuring that firms conduct busine
by
David Clamp
Teaser
Executive SearchContent Type
General
18/04/24
Summary
Private equity (PE) is a growing industry that has always attracted ambitious top talent due to its high risk/high gain capital investment. Pre-covid, we saw the global private equity industry b
by
Tracey Alper
Related jobs
Salary:
£120 - £125 per day
Location:
City of London, London
Industry
Consumer & Retail
Qualification
Part qualified
Market
Commerce & Industry
Salary
£100 - £150
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
Finance Assistant/PE backed events business/Temporary to permanent/Netsuite
Reference
ARH020524
Expiry Date
01/01/01
Author
Aaron HowardAuthor
Aaron HowardSalary:
£150,000 - £175,000 per annum + Equity, Bonus and Benefits
Location:
West Midlands
Industry
Business Services
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin executive search is working with a PE-Backed Environmental services business
Reference
TA 3260
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£150,000 - £175,000 per annum + Equity, Bonus and Benefits
Location:
Yorkshire and the Humber
Industry
Business Services
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search has an exciting opportunity for a CFO to join a PE Backed infrastructure business
Reference
TA 3259
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£180,000 - £200,000 per annum + Equity, Bonus and Benefits
Location:
West Midlands
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search is working with an Established multisite wholesale Distribution business
Reference
TA 3258
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£150,000 - £170,000 per annum + Equity, bonus and benefits
Location:
Essex
Industry
Business Services
Qualification
Fully qualified
Market
Executive Search
Salary
£125,000 - £175,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search is working with a PE-backed multisite product-led distribution business
Reference
TA 3257
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£28,000 - £32,000 per annum
Location:
Gloucester, Gloucestershire
Industry
Consumer & Retail
Qualification
None specified
Market
Commerce & Industry
Salary
£30,000 - £35,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
Marks Sattin have been engaged by a global leader in engineering and manufacturing to recruit two Buyers on interim 6-9 month contracts.
Reference
BBBH180160
Expiry Date
01/01/01
Author
Ben NeeamuthkhanAuthor
Ben NeeamuthkhanSalary:
£110,000 - £120,000 per annum + Equity, Bonus and Benefits
Location:
London
Industry
Technology
Qualification
Fully qualified
Market
Executive Search
Salary
£100,000 - £125,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Mark Sattin Executive Search is working with a PE-Backed Tech enabled Business.
Reference
TA3257
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£30,000 - £35,000 per annum
Location:
Stockport, Greater Manchester
Industry
Business Services
Qualification
None specified
Market
Financial Services
Salary
£35,000 - £40,000
Job Discipline
Process Improvement
Contract Type:
Permanent
Description
Purchasing Officer Stockport £30,000 - £35,000
Reference
BBBH180207
Expiry Date
01/01/01
Author
Terri BishopAuthor
Terri BishopSalary:
£400 - £500 per day
Location:
London
Industry
Media & Communications
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£350 - £450
Job Discipline
Qualified Finance
Contract Type:
Contract
Description
Interim Financial Controller for PE-backed media and events business
Reference
SUM180200
Expiry Date
01/01/01
Author
Subhaan MalikAuthor
Subhaan MalikSalary:
£30,000 - £37,000 per annum + +10% Bonus + 3 Days WFH
Location:
South West London, London
Industry
Investment Banking & Capital Markets
Qualification
None specified
Market
Financial Services
Salary
£35,000 - £40,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
We are recruiting for a Collections Account Manager to join a large European corporate banking group, with worldwide jurisdiction on a 12 months Fixed-Term Contract.
Reference
BBBH179942
Expiry Date
01/01/01
Author
Deem NaPattaloongAuthor
Deem NaPattaloong