The outlook for private capital in 2024 is positive, as a more stable investing environment is bringing renewed optimism that M&A activity will steadily pick up in the course of 2024. Dealmaking has had a bumpy ride recently—because of a myriad of macroeconomic, geopolitical and other factors—with M&A volumes and values soaring to record highs in 2021 before dropping sharply during 2022 and 2023 to levels not seen in a decade. Private equity (PE) activity also slowed dramatically in 2023, as inflation put downward pressure on company operating margins and rising interest rates made it harder to earn an acceptable return. Furthermore, the lack of certainty around future cost of capital made it difficult to price deals. PE dealmakers in particular found financing for new leveraged buyout deals challenging as traditional lenders were navigating their own set of challenges.