Private Equity Trend Report 2023

ReportData Insight 19 April

Private Equity Trend Report 2023

Battling through the headwinds

Mergermarket is pleased to present the Private Equity Trend Report 2023, in association with PwC. The report features an overview of the European private equity (PE) market, along with insights from 250 PE principals based in the region.

Highlights include:

  • Private equity in Europe. European PE saw a pronounced downtrend in the second half of 2022. Both deal volume and deal value remained well below pre-pandemic levels in this time period. PE volume was down by 19% year-on-year (YoY) to 2,548 transactions. However, deal value remained stable only declining slightly by 1% YoY to €214.8bn.
  • Making the most of new opportunities. GPs continue to screen deal flow—more than half of respondents increased the number of potential transactions they reviewed in 2022 compared with 2021. Further, 58% increased the number of new investments they made in 2022 versus 2021, making the most of a disrupted market.
  • Funds go head-to-head for deals. 71% of respondents agree that competition for investments among PE firms increased in 2022 versus 2021—30% say that competition increased significantly.
  • Good news for year ahead? 44% of respondents believe the European deal market will improve somewhat in 2023. At the same time, just 23% expect things to get worse. Overall, buyers will be looking for a reality check among vendors over valuations, price gaps having been an obstacle in 2022 amid weaker stock market performance.
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