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Back to blog March 03, 2018 No Comments Author: Andy Jones

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.

Private Equity Portfolio Company Holding Periods_Trends

  • 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).

We last reported holding periods for private equity portfolio companies about 6 months ago.