PE Firms/backed Companies Occupy >50% of Deal Activity, Tapping into Value-Accretive Opportunities: These companies are strategically deploying the capital raised pre-interest rate hike to capitalize on undervalued assets/platforms. Firms like ECP and Macquarie focused on corporate investments, employing a "buy-and-hold" strategy to maximize returns when market conditions improve. Meanwhile, PE-backed entities targeted development assets, leveraging equity and sponsor support to advance these assets to COD, positioning them for lucrative exits.
Listed IPPs/Utilities & Private Firms Adopt a Cautious M&A Approach in Response to Market Conditions: Elevated interest rates have prompted companies to adopt disciplined M&A strategies, prioritizing balance sheet health and organic capacity development. Many firms are focusing on divesting mature portfolios to sustain operations and fund development activities without relying on costly debt markets. Simultaneously, selective investments in early-stage assets position these companies for future growth as market conditions improve.
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