Private-equity exits edged up in the second quarter, with 515 deals worth a combined $88.7 billion, up 2% in exit number and up 47% in transaction value from the previous quarter, Preqin data shows.
However, the number and value of exits were down 14% and 25%, respectively, from the year-earlier quarter, when there were 596 deals worth a total of $117.5 billion. The total number of exits as of June 30, 2023, included 30 bankruptcies or restructurings, which was higher than the 20 bankruptcies or restructurings in the second quarter of this year and more than the 23 bankruptcies or restructurings in the first quarter of 2024.
In the second quarter, the number and aggregate amount raised was lower from the first quarter, with 177 funds raising a combined $151.5 billion, down 6% by number and 15% by total capital raised. However, private-equity managers raised more capital than the combined $143.7. billion by 293 funds in the second quarter of 2023.
Meanwhile, median net returns for 2020 and 2021 vintage private-equity funds dropped to 14.6% internal rate of return and 11.6%, respectively. The 2021 vintage has the lowest performance since the 10.3% median net IRR of 2007 funds. The 2020 vintage is the lowest since the 14.3% median net IRR turned in by the 2010 vintage private-equity funds. By comparison, the highest median net IRR tracked by Preqin was the 2001 vintage funds with 17% median net IRR.