Private Equity Firms Are Increasing Exposure to These Industries

Private Equity Firms Are Increasing Exposure to These Industries

The ratio of buyouts to exits in 2023 has risen to 43:1.

Private equity firms are acquiring companies faster than they can exit, increasing their exposure to certain industries. The ratio of private equity buyouts to exits in North America has increased to 43:1 this year, up from 8:1 in 2019, according to M&A data analyzed by Value Add. What’s more, the average holding period of a portfolio company has reached an all-time high of 7+ years, according to Preqin. 

Value Add analyzed the net increase (or decrease) of private equity holdings by industry between 2019-2023 to understand where sponsors are intensifying their focus. 

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