Private equity deals roar back

Fri, 08/09/2024

by Ellie LeTu

Source: WSJ

• Data center credits investment

  • PE firms are doubling down on investments into data centers to capitalize on the AI gold rush.

    • BlackRock invested $34B last quarter, Ares invested $26B (both recent highs).

  • 91% of all data center deals ($44B) are private equity.

  • An estimated $2T of investment in data centers are expected in the next five years to meet demand from AI.

• PE's strong growth

  • 2024 is a sweet spot year for PE firms: values are attractive and activity is high.

  • PE firms are also stockpiling more cash, with exits and fundraising picking up.

    • KKR ($32B) and Ares ($26B) collected record high new funds last quarter.