Private Equity Portfolio Company Holding Periods – Updated
The most recent data from Private Equity Info shows median holding periods for private equity portfolio companies are still declining, although only slightly.
- Current = 4.9 years, (2018 YTD)
- Peak = 5.7 years, (2014 – recovering from the recession)
- Low = 3.0 years, (early 2000’s dot com boom… although it went down to 3.5 years in 2008 as well)
There’s some ancillary evidence from the data that suggests that PE holding periods acts as a barometer of deal activity and corporate valuations. Historically, in the frothiest of times for the broad market, PE firms have had the lowest holding periods (more churn).