The exit value for private equity U.S. portfolio companies fell 40.7% in the third quarter from the prior quarter and was down 83.7% from the second quarter of 2021 peak, according to PitchBook's private equity breakdown released Oct. 11.
U.S. private equity deals also stalled in the third quarter to 6,162 transactions worth a total of $611.6 billion as of Sept. 30, down from 8,809 deals valued at a combined $1 billion in all of 2022, PitchBook data shows. The the number of deals in the third quarter was down by 34%, and deal value in the third quarter was down 54.7% from their peak in the fourth quarter of 2021.
Leverage levels are down significantly, with debt as a percentage of total deal value dropping to 43.7% in the third quarter from 50.8% in 2022 and a 10-year average of 55%.
Private credit loan volumes for leveraged buyouts totaled an estimated $46.8 billion in the first half of 2023, exceeding bank lending for LBOs in the broadly syndicated loan and high-yield markets, PitchBook said.
