Goldman Sachs is preparing for a challenging period ahead as the era of easy profits in private equity comes to an end. The value of global deals stands at roughly $1.4 trillion at the halfway stage of 2024, up 14% from the same period in 2023. However, this figure still lags the 10-year average for a first half by more than $300 billion. In Europe, private equity mega-deals are in decline, accounting for only 21.6% of total deal value in 2024 year-to-date, down from historical averages, as higher borrowing costs and a weak economic outlook continue to bite. Despite sluggish growth in global mergers and acquisitions (M&A) activity in the second quarter, many dealmakers remain optimistic, forecasting an increase in transactions in the second half of 2024. Private equity firms clinched more than $30 billion of deals globally this week, raising hopes for a recovery in M&A following a slow first half of the year.