Historically, PE shops have typically displayed roughly five-year holding periods for their portfolio companies. This appears to be the sweet spot, in terms of time, for firms to restructure companies as they see fit, execute on strategic initiatives and ultimately realize the growth they set out to achieve at the inception of their various investments. That said, private markets are dynamic and no investment carries the same characteristics, leading firms to either hold on to portfolio companies for much longer than 5 years or to exit investments earlier than expected. Using the PitchBook platform, we took a look at the median holding periods of global private equity firms to uncover which firms are churning through companies quicker than others. Check out our findings below.
For firms with at least 50 full-circle investments (entry to exit), the shortest median holding periods belonged to the following partnerships:
And here are the shortest median holding periods for firms with between 20 and 50 full-circle investments:
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