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Laxman Pai, Opalesque Asia: Globally, private equity deal values have almost halved from US$1.2 trillion to US$685 billion between Q1 and Q3 in 2022 as the industry continues to adjust to an increasingly tough climate for transactions, said a study.
According to global law firm Dechert's latest Global Private Equity Outlook 2023, while deal activity remains above pre-pandemic levels, the number of transactions dropped by 18% year-on-year (YoY), to a total of 4,694 deals in the first three quarters of 2022.
In EMEA, the number of buyouts fell by 22% from Q1 - Q3 2022 compared with the same period in 2021, a steeper rate of decrease than global activity.
"The rising cost of leverage as well as volatile valuations amidst a global economic downturn and tightening monetary policies have been identified as the greatest challenges facing the PE industry," said the study.
Published in association with Mergermarket, this is the fifth year of the report which surveys more than 100 senior-level executives within PE firms based in Europe, the Middle East and Africa (EMEA), North America, and Asia-Pacific (APAC).
PE fundraising has also fallen significantly during 2022, dropping 16% by value and 30.6% by the number of funds closed through Q3 2022 compared to 2021. According to respondents, the most significant challenge to fundraising in EMEA and by an even greater margin APAC is large LPs increasingly concentrating their investment relationships with a sma...................... To view our full article Click here
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