PitchBook: U.S. private equity exit value fell 41% in Q3
The exit value for private equity U.S. portfolio companies fell 40.7% in the third quarter from the prior quarter and was down 83.7% from the peak in the second quarter of 2021, according to PitchBook's private equity breakdown, released Wednesday.
U.S. private equity deals also stalled in the third quarter to 6,162 transactions worth a total of $611.6 billion as of Sept. 30, down from 8,809 deals valued at a combined $1 billion in all of 2022, PitchBook data shows. The number of deals in the third quarter was down 34% and deal value down 54.7% from their peak in the fourth quarter of 2021.
Leverage levels are down significantly, with debt as a percentage of total deal value dropping to 43.7% in the third quarter from 50.8% in 2022 and a 10-year average of 55%.
Private credit loan volumes for leveraged buyouts totaled an estimated $46.8 billion in the first half of 2023, exceeding bank lending for LBOs in the broadly syndicated loan and high-yield markets, PitchBook said.