Private equity firms have been playing an increasingly important role in the M&A market. The private equity market tripled in size during the last decade, and a McKinsey report revealed that 2022 was the second most active year in history for private equity-backed deal volume. Additionally, an article published by Harvard observes that private equity’s share of the overall M&A volume is approximately 36%.

There are a number of factors driving the growing role of private equity in M&A. One factor is the availability of capital. Private equity firms have access to large amounts of capital, which allows them to make big deals. According to PWC, private equity firms in the United States have invested approximately $10.7 trillion in capital over the last decade. Private equity firms also have access to more creative financing solutions such as elevated equity contribution, seller’s notes, paid in-kind financing and private credit markets helping them to advance in deals that other parties may not be able to. READ MORE