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Q4 2022
PitchBook Analyst Note: 2023 US Private Equity Outlook
December 19, 2022
PE returns, fundraising could take a breather in 2023
There’s little doubt that the private equity universe will have to grapple with drooping company valuations and expensive debt in 2023. But what are the implications?
PE funds’ returns will likely underperform public markets. Take-private deals should continue, but firms will probably shift gears to much smaller targets. Exits could hit a 15-year low, relative to new investments. And buyers in need of leverage are likely to tap nonbank lenders almost exclusively in the coming months.
That’s what PitchBook analysts think the new year will bring, and those predictions—and others, such as which types of healthcare deals are poised to bounce back—are laid out in our 2023 US Private Equity Outlook report.
There’s little doubt that the private equity universe will have to grapple with drooping company valuations and expensive debt in 2023. But what are the implications?
PE funds’ returns will likely underperform public markets. Take-private deals should continue, but firms will probably shift gears to much smaller targets. Exits could hit a 15-year low, relative to new investments. And buyers in need of leverage are likely to tap nonbank lenders almost exclusively in the coming months.
That’s what PitchBook analysts think the new year will bring, and those predictions—and others, such as which types of healthcare deals are poised to bounce back—are laid out in our 2023 US Private Equity Outlook report.