Evercore Sees PE Deals Returning as Funds Seek Cash for Partners

Private equity firms will face additional pressure to sell assets and return capital to investors after two years of sluggish dealmaking, according to a senior executive at Evercore Inc.

The global value of mergers and acquisitions and related transactions fell below $3 trillion last year for the first time since 2013, according to data compiled by Bloomberg. Private equity funds were less active as a sharp rise in interest rates made financing deals more expensive and raised the odds of a recession.

The deal slump has been exacerbated by a persistent gap in expectations — sellers want higher prices ...