Soaring PE deal value in Q4 could set the stage for 2021
January 12, 2021
In the second quarter of 2020, private equity deal value in the US sunk to its lowest point in seven years. By Q4, that figure had more than doubled, as the industry recorded its highest quarterly deal value in at least a decade.
With firms still sitting on piles of dry powder and plenty of major deals in the pipeline, that impressive recovery from the doldrums of the pandemic could be a sign of even more robust dealmaking to come in 2021. Sponsored by Grant Thornton, PitchBook's 2020 Annual US PE Breakdown has more on last year's second-half surge and the other twists and turns that defined the PE market in a year unlike any other. Other key takeaways include:
With firms still sitting on piles of dry powder and plenty of major deals in the pipeline, that impressive recovery from the doldrums of the pandemic could be a sign of even more robust dealmaking to come in 2021. Sponsored by Grant Thornton, PitchBook's 2020 Annual US PE Breakdown has more on last year's second-half surge and the other twists and turns that defined the PE market in a year unlike any other. Other key takeaways include:
- The exit market defied expectations, with 2020's annual exit value increasing over 2019
- The PE industry set annual records for both growth equity deal value and add-on rate
- Thematic funds targeting tech, longer investment horizons and other strategies continued to raise ample capital
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