Given higher interest rates some Private Equity deals have been executed with 100% equity. This means Private Equity firms will become more valuation sensitive in order to generate higher returns.
In months and years past PE firms would use minimal equity (subscription loans were popular), when executing transactions. Minimizing the equity component would goose PE firms’ IRR calculations, enabling them to show off to their limited partners (PE IRR calculations are a separate story). 100% equity deals also means gone are the days of PE firms paying themselves massive debt-funded payouts at acquisition close. There is some justice in the capital markets. Hopefully it continues.