PitchBook News - VC valuations amid uncertainty

Needless to say, the global macroeconomic backdrop in 2022 has experienced a sharp turn.

Inflation is raging as supply chains adjust to pandemic-related shocks, and Russia's invasion of Ukraine further exasperates these issues.

 

Significant market volatility has disrupted PE's previously fervent pace. Thus, many of the predictions we had previously made are not expected to come true in the changed PE landscape.

For example, we had expected PE firms to close at least 400 middle-market software deals during the year. While PE appetite for tech during the first half of the year remained healthy despite numerous headwinds, deal activity has likely slowed down enough to fall short of the prediction.

The slide in public markets has also created near-impossible conditions for private companies to list publicly, impacting our predictions about PE-backed healthcare provider platform IPOs and more private capital managers going public during 2022.

The complexities of the macro environment have created a very different reality for PE than we had anticipated, but we reassessed the landscape in our new research.

For additional analysis, click to download our 2022 US Private Equity Outlook: H1 Follow-Up.

Feel free to reach out with any questions or feedback, or if you would like to discuss the research.