Pension fund-backed deal value down 79% in Q4 2023

Mergers and acquisitions with direct pension fund involvement in the fourth quarter of 2023 plunged 78.9% year over year, according to S&P Global Market Intelligence data.

Total transaction value stood at $2.66 billion in the last three months of 2023, compared with $12.63 billion in the same period in 2022. The number of deals declined to 25 from 41.

In full year 2023, the aggregate value of deals with pension fund involvement fell 35.6% to $28.68 billion from $44.56 billion in 2022. Deal volume dropped to 106 from 155.

– Download a spreadsheet with data in this story. – Read about the third-quarter 2023 Data Dispatch on M&A deals with direct pension fund involvement. – Explore more private equity coverage.

Sector exposure

The technology, media and telecom sector secured the bulk of pension fund-backed investments in 2023 with $17.87 billion, up from $7.52 billion in 2022.

The energy and utilities sector came second with $2.77 billion, followed by the materials sector with $1.83 billion.

Top deals

Six of the top 10 deals in the fourth quarter of 2023 included the involvement of private equity or venture capital.

In the biggest transaction during the quarter, a joint venture that includes Canada Pension Plan Investment Board and Blackstone Inc. acquired a 20% stake in $16.8 billion worth of a senior mortgage loan portfolio from the failed Signature Bank for $1.2 billion. The Federal Deposit Insurance Corp. kept an 80% stake.

The commercial real estate loan portfolio comprises more than 2,600 loans on retail, multifamily and office properties mainly in the New York metropolitan area.