Where will $374 billion in dry powder go?

McKinsey Insights again! Here are six key themes that are likely to drive PE investment activity in the coming years:

1. Software: Software continues to be a major focus for PE firms, as it is a key enabler of digital transformation across a wide range of industries.
2. Healthcare: Healthcare is another major growth area for PE, as the industry undergoes significant changes due to technological innovation and demographic trends.
3. Financial services: The financial services sector is also ripe for PE investment, as consolidation and innovation create new opportunities for growth.
4. Consumer: The consumer sector is another key focus for PE, as investors seek to capitalize on the growing demand for e-commerce and other digital-first businesses.
5. Industrials: The industrial sector is also seeing increased PE investment, as investors seek to take advantage of the trend towards automation and digitization.
6. Sustainability: Sustainability is a growing trend in PE, as investors seek to invest in businesses that are addressing environmental and social challenges.

Read the whole thing here:

https://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/where-could-374-billion-dollars-in-dry-powder-go-six-themes-to-watch