The turbulent deal environment persisted from 2023 into Q1 2024, with both volume and value sustaining a downward trajectory, decreasing by 21.7% and 24.6% QoQ, respectively. While the outlook for rate decreases appears optimistic for the latter half of 2024, the higher costs of financing have contributed to a notable decline in LBO platform acquisitions, dwindling from 19.6% of all PE deals in 2023 to 19.0% of the share in Q1. This trend manifests in diminished leverage ratios, evident in the decline of the Debt/EV ratio to 45.1% in Q1 from the 45.7% recorded for the FY 2023, alongside a decrease in Debt/EBITDA ratio from the 10-year average of 5.6x to 5.1x in Q1.While the middle market PE environment has witnessed consistent decreases in volume and value QoQ, the outlook for 2024 offers promising prospects for sponsor-backed M&A.