Private Equity Transaction Volume
The data table below compares monthly private equity transaction volume (investments and exits of portfolio company holdings) for the first half of 2021 and 2022.
For January and February 2022, PE investment volume was largely unchanged from 2021. However, beginning in March, we see an abrupt reduction in PE platform acquisitions, corresponding to an increase in the Fed Funds rate and geopolitical uncertainty, primarily surrounding the war in Ukraine.
For all six months in the first half of 2022, PE platform investments declined by 26% compared to 2021.
For January and February 2022, PE exits were up substantially year-over-year in 2022, but also took a sudden drop in March through June.
Coincidentally, PE exits in the first half of 2022 were also down 26% compared to 2021 (same as investments).
Because both investments and exits were down the same percentage, the 3-to-1 ratio of private equity investments-to-exits remained unchanged from 2021 to 2022. This is indicative of the growth of the private equity industry as a whole… that the PE universe acquires three companies for every one they sell.
Here’s the same data, graphically.
NOTE: This study only includes platform investments and therefore excludes add-on investments.
Private Equity Transactions
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