Macro outlook clouds surging private equity take-private activity

Public-to-private transactions may face challenges due to uncertain macroeconomic conditions in 2025. The global value of private equity- and venture capital-backed take-private deals grew 32% year over year to about $150 billion in 2024. It was the highest annual total recorded in at least five years.

"The risk that I'm hearing people are most concerned about is the volatility in the market and the macroeconomic environment, the sense that people don't know whether there are going to be tariffs applicable to them that will impact their businesses," said Christian Westra, a partner in Ropes & Gray's private equity transactions group.

US economic growth falters, goods prices spike higher in February flash data

February's flash Purchasing Managers' Index (PMI) surveys showed a sharp slowdown in US business growth and rising goods prices. The weaker expansion was largely attributed to the uncertainty caused by recent policy initiatives. For example, tariffs were viewed as one of the key reasons behind higher prices in the manufacturing sector. Despite the higher prices, US manufacturers reported accelerating growth in February, marking the largest monthly rise in output in nearly a year. 

According to the PMI data, the US was the fastest-growing major developed economy toward the end of 2024 and into January, but its expansion slowed significantly in February. The rate was weaker than that of Japan and the UK, and only marginally above the eurozone.

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