Private Equity Holding Periods – Histogram (updated)
I previously discussed the trend in median holding periods for private equity-owned portfolio companies. However, there is a significant standard deviation in the data.
The histogram below shows the distribution of holding periods for portfolio company exits in 2017 YTD.
While the data looks much like a normal distribution for holdings periods 0 – 8 years, there’s an unusual bump up in years 8 – 10. Read my previous explanation about this effect related to the recession of 2008 – 2010.
Also, a large portion of the longest held investments (12+ years), were European private equity firms holding European portfolio companies. Cultural difference.