In this episode, Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from 3Q 2022 that are top of mind for PE investors.
PE Pulse is a quarterly report and corresponding podcast miniseries that provides analysis and insights on private equity market activity and trends.
Visit Private Equity 3Q report to view this quarter’s summary and infographic.
The PE sector continued to experience cyclical headwinds in the third quarter, as rising interest rates, growing concerns of a recession, deteriorating macro sentiment and challenges in the financing markets all conspired to limit firms’ ability to execute new transactions. At the same time, however, firms continue to position themselves for long-term strategic growth, with new product launches and innovations, and by tapping new sources of capital that will allow the industry to grow.
Five takeaways from 3Q 2022:
- Despite hesitation in financing markets, firms continue to explore opportunities presented by high-quality assets.
- PE fundraising activity has remained largely flat through most of 2022, albeit down from last year’s active environment.
- Despite the challenging markets, AUMs continue to climb at many of the largest funds.
- PE exit activity remains muted amid IPO market shutdown and buyer/seller price gap.
- Despite headwinds, firms continue to position themselves for long-term strategic growth.
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Duration 10m 00s
In this seriesSeries overview
Chief Sustainability Officer and Managing Director, Brightstar Capital Partners
Managing Director, Sustainable Investing, KKR
EY Americas Financial Accounting Advisory Services Transactions Leader; SPAC Co-Leader