Private Equity Exits Report: Q2 2023

Private Equity Exits Report: Q2 2023

Private equity exit activity increased +74% QoQ, ending seven consecutive quarters of declining activity.

What's Included

Global Exit Trends

  • Global Exit Activity
  • Value of Global Exits
  • Average Global Exit Size
  • YoY Change in Global Exit Size

Regional Exit Trends

  • Exit Activity by Region
  • Value of Exits by Region
  • Average Exit Size by Region
  • YoY Change in Exit Size by Region

Sector Exit Trends

  • Exit Activity by Sector
  • Value of Exits by Sector
  • Average Exit Size by Sector
  • YoY Change in Exit Size by Sector

Key Findings

Increase in Capital Deployment Over Exits: In Q2 2023, private equity firms put $195.1 billion into new buyouts while exiting only $91.4 billion worth of portfolio positions. This marked trend indicates that firms are investing capital at a faster rate than they are exiting although sponsor-backed exits were up +74% QoQ giving firms a glimmer of hope of exiting long-held positions.

Geographical Disparity in Exit Activity: Western Europe is showing a faster recovery in exit activity compared to North America. For example, exit activity was up 170% QoQ in Western Europe in Q2, versus North America where it was up only 30% QoQ. Interestingly, Q2 2023 was the first time in over 10 years that Western Europe produced more private equity exits than North America.

Decline in Average Exit Sizes: The average exit size globally in Q2 2023 was $270 million, down 38% YoY, marking the steepest decline since early 2021. This decline was even more pronounced in certain sectors, with Healthcare seeing the largest drop of 66% YoY.

Sector Trends with Emphasis on Technology and Consumer: Of the $91.4 billion in PE dollars that exited in Q2 2023, 24% came from the Consumer sector and 20% from Technology. Technology continued its streak of being one of the three largest sectors for PE dollars, despite a noticeable drop in average exit sizes, potentially due to smaller but more frequent deals in the technology sector.

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