US PE Breakdown

After a volatile Q1, US PE investors anticipate a steadier future

After rewriting the record books last year, US PE activity got off to a tepid start in 2022. Already under pressure from the threat of rising interest rates, dealmakers hit pause for weeks after Russia’s invasion of Ukraine, and market volatility and valuation adjustments combined to stymie the exit landscape.

Yet markets appear to be moving forward, with indications that investors may be expecting calmer waters and a more normalized dealmaking environment ahead, according to our Q1 2022 US PE Breakdown.

Key takeaways

• PE investors closed 2,166 deals worth a combined $331.0 billion, as the war in Ukraine wreaked havoc in lending markets and banks held onto billions of dollars in syndicated loans for LBOs.
   
• Despite an ongoing focus on ESG, the turbulence in the energy sector is likely to create opportunities for investors in traditional oil and gas assets.
   
• Exit value totaled just $90.0 billion last quarter, as exits to other sponsors held steady but public listings all but disappeared.
   
• The overall fundraising environment remains positive, yet the fight for commitments is fierce, as GPs return to the fundraising trail quickly and seek more capital than LPs can provide.

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