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March 31, 2017 No Comments Author: Andy Jones

Portfolio Company Holding Periods Trending Down

Holding periods for PE-owned portfolio companies correlate with macro-economic events – lengthening during recessionary periods and shortening during growth & recovery years.

The most recent data from www.PrivateEquityInfo.com shows median portfolio holding periods (4.9 years) trending down as PE firms capitalize on enhanced valuations. The peak was 5.7 years in 2014.

May 13, 2014 No Comments Author: Andy Jones

Private Equity – Holding Periods

Private equity holding periods continue to lengthen…

For exits in 2014, the median holding period slightly increased to 5.8 years. These exits mostly represent portfolio companies that were acquired at the peak of the last bubble (2008), prior to the recession and likely at higher valuations. Looking forward, will the holding period decrease as the data begins to reflect acquisitions made during the recession or has the holding period of the private equity firms fundamentally lengthened?