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Schroders Private Equity Lens Q3 2023
Slowdown continues as fundraising, deals, and valuations adjust to new paradigm
Ler o relatório completoSchroders Capital Private Equity Lens Q3 2023
12 pages
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The Schroders Capital Private Equity Lens brings key insights and trends in global buyout, growth, and venture capital.
The slowdown continued in Q3 2023 with fundraising and deal activity reseting to pre-covid 2019 levels while exits continued to be challenged:
- Fundraising has returned to 2019 levels, yet the number of fund closes is at multiyear lows. Large funds have claimed a greater share of fundraising, with large buyout funds raising 80% of total buyout fundraising in Q3 2023.
- Over the last 5 years, there has been a shift in the geographic distribution of fundraising, with a smaller share for Asia private equity and a higher share for Europe private equity.
- Deal activity, having surged in 2021, has now normalised with buyout, growth, and VC deal volume back to 2019 levels.
- Exit activity continues to be muted with multiyear lows in the number of exits, particularly in sales to strategic buyers.
- Entry buyout valuation multiples have corrected and the valuation discount in small-mid buyouts relative to large buyouts has widened.
- Despite cost pressures from higher interest rates and inflation, buyout performance has been robust.
- Secondaries fundraising has had a record year in 2023, although driven by a few large fund closes. Following the flurry of GP-led activity in 2021, secondaries funds increased the share of LP-led deals.
- VC valuations for both early- and late-stage companies have recovered after the sharp correction in 2022.
- VC funding has shifted over the last 5 years from SaaS to AI and CleanTech.
Ler o relatório completoSchroders Capital Private Equity Lens Q3 2023
12 pages
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