For the first time in over a decade, the US and Europe are seeing a significant gulf in buyout multiples. In a new research note, PitchBook analysts explore what's driving the valuation differentials, which have big consequences for GP returns across the private equity industry. Key takeaways include:
- US buyout prices during the pandemic have surged to record highs while Europe's declined, a sign of each market's comparative resilience.
- Buyout valuations in Europe's biggest markets have come closer in line with each other, as the UK's buyout multiples dropped while those in France and Germany increased.
A record percentage of US deals priced between 15 times and 19.9 times, but European prices are expected to rise over the next 12 months.