PE Pulse: Five takeaways from 4Q 2022

In this episode, Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from 4Q 2022 that are top of mind for PE investors. 

Related topics Private equity

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 4Q report to view this quarter’s summary and infographic.  

2022 was an incredibly dynamic year for the private equity (PE) industry, characterized by growth, innovation, creativity and the trademark resiliency that has defined the industry since its inception. The first half of the year saw a deal environment that carried over much of the momentum from 2021’s record levels of activity. The second half of the year, however, saw PE firms become increasingly cautious in the face of rising inflationary pressures, the macro impacts of the war in Ukraine, a widening valuations gap, and widespread dislocation in the financing markets that restricted access to PE’s traditional sources of financing. 

Key takeaways:

  • Despite the drop-off in announced deals over the course of the year, deal values closed 2022 well above pre-pandemic averages.
  • Add-on deals have averaged about 50% of total PE activity versus platform investments; right now, they’re about 60% of the total PE market.
  • Firms announce about 80 take-private deals valued at more than US$262b in 2022.
  • Bloomberg reported a few weeks ago that there was more than US$40b of hung deals sitting on banks’ balance sheets. Although not all of that is PE – the effect’s been the same. Higher spreads, increased costs of financing.
  • 2022 was private credit’s time to shine and it’s really going to be the inflection point for private credit, and that’s going to be one of the real legacies of this period of volatility.

For your convenience, full text transcript of this podcast is also available. Read the transcript.

Podcast

Episode 55

Duration 08m 49s

In this series

Series overview
(Event List - Manual)

PE Pulse: Five takeaways from 4Q 2022

In this episode, Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from 4Q 2022 that are top of mind for PE investors.
Podcast

Episode 55

Duration
08m 49s

Presenters

PE Pulse: Five takeaways from 3Q 2022

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.
Podcast

Episode 54

Duration
10m 00s

Presenters

PE Pulse: Five takeaways from 2Q 2022

In this episode, Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from 2Q 2022 that are top of mind for PE investors.
Podcast

Episode 53

Duration
10m 00s

Presenters

How Brightstar balances value and values when implementing ESG

In this episode of EY NextWave Private Equity podcast, the speakers explore how operating executives can effectively communicate the value prop of ESG at the portco level.
Podcast

Episode 52

Duration
24m 00s

Presenters

Maha Eltobgy

Chief Sustainability Officer and Managing Director, Brightstar Capital Partners

What ESG means to KKR

In this episode, the speakers discuss why KKR views ESG as a business opportunity that both creates and protects value over time.
Podcast

Episode 50

Duration
24m 00s

Presenters

Elizabeth Seeger

Managing Director, Sustainable Investing, KKR

What’s in store for SPACs

In this episode, the speakers explore why SPACs remain highly relevant despite market volatility and regulatory headwinds.
Podcast

Episode 49

Duration
30m 00s

Presenters

Karim Anani

EY Americas Financial Accounting Advisory Services Transactions Leader; SPAC Co-Leader

How today’s economic rebalancing is impacting PE

In this episode, the speakers discuss how macroeconomic factors such as inflation, monetary policy, and the labor shortage will impact PE investment decisions and theses.
Podcast

Episode 48

Duration
23m 00s

Presenters

Gregory Daco

EY-Parthenon Chief Economist, Strategy and Transactions, Ernst & Young LLP

PE Pulse: Five takeaways from 1Q 2022

In this episode, Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from 1Q 2022 that are top of mind for PE investors.
Podcast

Episode 47

Duration
10m 00s

Presenters