Private equity barometer | Q4 2022

Report Data Insight 24 January

Private equity barometer | Q4 2022

Amid difficult market conditions, European PE volume remains broadly steady even as value drops in Q4 2022

European PE activity continued to fall in Q4, although the decline was less pronounced than in previous quarters and, encouragingly, volume was more or less flat.

Key findings include:

  • Overall European PE: European PE volume came to 547 deals, just 2% below the previous quarter but the lowest point in the past five years. Deal value continued to fall – the EUR 50bn worth of transactions was a quarter-on-quarter decline of 22% and a low not seen since the pandemic low-water mark of Q2 2020.
  • Buyouts: The quarter-on-quarter change in buyout value was the weakest metric in Q4, descending 28% from the previous quarter to EUR 36.9bn. This is the lowest point in the past three years, since Q2 2020. Volume slipped by just 10% to 207 buyouts, which again is the weakest performance since the onset of the pandemic. 
  • Growth capital: Growth capital was an exception, deal volume rose by 7% to 321 transactions, compared with 301 in the previous quarter. Growth deal value was also up by 7%, totalling EUR 12.6bn, benefitting from its all-equity funding model. 
  • Early-stage: The sharpest fall in volume was in early-stage deals, which came to just 19 funding rounds, down 24% on Q3 to the lowest level in at least five years. VC deal value, however, held relatively firm. The EUR 512m invested represented a fall of just 8% on the previous quarter, but again was a five-year low. 
Did you enjoy this article?

Add the following topics to your interests and we'll recommend articles based on these interests.

Public M&A Private Equity

Mergermarket gives M&A professionals the competitive advantage

Get insights on deals 6-24 months before they become public knowledge

Set up your free trial today