Private equity deals insights: Q2 2019

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Executive summary

In Q2 2019, US private equity (PE) deal activity rebounded after a slow Q1, as the leveraged loan market recovered and market uncertainty that adversely impacted Q1 eased.

As the US enters the longest period of economic expansion in the country’s history, concerns loom about a potential recession and the impact to PE deals activity. We believe that the consistent delivery of long term performance that outpaces traditional markets and high investor demand for the private equity asset class will mitigate the impact of broader economic headwinds on PE deal activity.

pe-deals-activity

“Record amounts of dry powder and continued high demand for new deals is putting added pressure on the investment hypothesis. This is requiring greater focus on detailed analyses to drive value or spot risks. Those who can successfully harness the power of data analytics will be at an advantage over those who approach data as they have in the past."

Andrew Cristinzio, US Private Equity Sector Leader

Trends and highlights

  • Deal value and volume rebounded from sluggish Q1 levels and were largely on pace with the prior year quarter, as the overhang from Q4 / Q1 market volatility and financing delays lifted.
  • PE exits continue to decline. Secondary buyouts (SBO) continue to outpace corporate acquisitions of PE backed companies, SBOs comprised 55% of all PE exits.

Contact us

Andrew Cristinzio

Private Equity Leader, PwC US

Scott Gehsmann

Private Equity Assurance Leader, PwC US

Puneet Arora

Private Equity Tax Leader, PwC US

Eric Janson

Private Equity Advisory Leader, PwC US

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