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Laxman Pai, Opalesque Asia: Global private equity exits totaled $155.3 billion between Jan. 1 and June 30, down 26% from $209.4 billion in the first six months of 2023, according to a study.
"Private equity exit value is on track to decline to its lowest annual total in at least five years despite signs that the IPO window is reopening," Preqin data revealed.
Annual exit value is on track to fall annually by roughly one-third from 2023's $460.3 billion full-year total, it said.
The bright spots include signs that the IPO market is reopening as an exit route for private equity and venture capital portfolio companies. The value of private equity-backed IPOs topped $10 billion in both the first and second quarters, the first time that has happened in consecutive quarters in more than two years, according to Preqin data.
Private equity exit value sunk to a three-year low of $64.8 billion in the first quarter but rebounded in the second quarter, rising 40% quarter-over-quarter to $90.5 billion, according to Preqin data.
Meanwhile S&P quoted Paul Aversano, a managing director at M&A advisory Alvarez & Marsal saying that persistent macroeconomic uncertainty remains a key factor in muted private equity exit activity, making it difficult for buyers and sellers to agree on a fair valuation for a business.
Cooling inflation and a potential reversal of high interest rates are priming M&A markets for more private equity-backed deal activity, but geopolitical...................... To view our full article Click here
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