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Back to blog October 04, 2017 No Comments Author: Andy Jones

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.Private Equity holding periods - histogram

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.