2022 Private Equity Deal Trends

Alts Axis Alts Axis

2021 was an unprecedented year for deals in private equity. Despite the ongoing impact of the pandemic, onset of inflation, and potential changes in the financing markets and tax rules, deal activity smashed records. Take a look at the following 2021 statistics, according to PitchBook, relating specifically to private equity activity:

  • The total number of deals in 2021 totaled 8,624 with an enterprise value of $1,237.5 billion representing an increase of 80% over the prior year in deal value.
  • Growth equity transactions totaled 1,367, with a transaction value of $113.4 billion representing an increase of 30% and 44% of transactions and deal value, respectively, from the prior year.
  • PE exit activity topped $850 billion in 2021, a 136% increase from 2020.
  • Funds raised $301.3 billion in capital, representing an increase of 11% over 2020, with just over 50% of total capital raised specific to middle-market funds ($154.5 billion).

All in all, 2021 was an incredible year for private equity and deal-making. With the substantial amount of dry powder waiting to be deployed, the overall sentiment is that deal volume and activity are not expected to slow as we head into 2022. However, there are some headwinds to be on the lookout for, such as inflation, rising interest rates, and regulation. Here are some key dealmaking trends to watch for…

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