This report was reuploaded on December 19, 2023, to update a data point on page 30.
On PE’s capital highway, slower traffic and far fewer exits
In a reversal from Q2, exits—the most important link in the private equity value chain—were weaker in Q3 than almost any quarter since the global financial crisis. More than anything, tight monetary conditions are to blame. Our Q3 2023 US PE Breakdown, sponsored by Stout and Barings, explains who’s still buying and selling and what could pull the industry out of its exit doldrums.
As fund managers weigh exit options, new off-ramps are likely to emerge in the form of secondaries and continuation funds.
Fundraising has fared better than expected, with new PE commitments tracking down 12% from record-breaking 2022.
Growth deals could outnumber LBOs this year for the first time, while corporate carveouts shine for their superior bankability.
Table of contents
| Executive summary: Exits shutdown | 4 |
| A word from Stout | 6 |
| Deals | 8 |
| A word from Barings | 17 |
| Deal valuation and debt metrics | 20 |
| Deals by size and sector | 21 |
| Spotlight: Secondaries and Liquifying Illiquid Investments | 22 |
| Exits | 24 |
| Fundraising and performance | 29 |