The average holding period of portfolio companies for private equity buyout funds has steadily increased since the financial crisis. Research provider Preqin notes that the average holding period was 5.9 years in 2014, up from 4.1 years in 2009.
The reason, they say, is due to the difficulties in exiting companies that were purchased at high valuations during the boom in the mid-2000s.
However, data through April show that the average holding period has fallen to 5.5 years in 2015, which Preqin says highlights favorable conditions, creating a “sellers’ market.”
