GCG’s Q2 2023 Middle Market Private Equity Update provides an overview of the latest trends in the private equity market.
Key findings include the following:
- During the first half of 2023, private equity-backed deal volume is down considerably. At the same time, deal value from PE-backed deals is up 2 percent. This suggests the deals that are getting done are on the larger end of the middle-market.
- Uninvested capital that has already been raised by PE but is yet to be deployed has declined significantly. That said, there is still a very high level of capital looking to be deployed.
- The new fundraising for PE has declined considerably during the first 6 months of 2023. This is a key metric to watch over the next few quarters. If fundraising is slowed, it will have an impact on PE’s positioning in the M&A market in future years.
- Overall, the increase in rates and the sharp pullback in available debt have significantly impacted PE deals. Deals that were once leveraged at a very high level and with very low rates are now being completed with less leverage and rates at a much higher level than in prior years.
Click here for the full update.