Global Private Equity Factbook – Q4 2022

Global PE investment activities improved in Q4 2022 with better access to private credit. Deal activity is anticipated to stay slow owing to the unstable macroenvironment; however, the record high level of dry powder is expected to encourage small-sized deals in 2023.

In Q4 2022, PE deals volume increased 7% with continued investments in public companies and add-on targets. Capital invested expanded 15% while deteriorating company valuations led to fewer exists. PE fundraising continued to decrease as LPs remained cautious. IT, energy, and transportation sector deals accounted for 67% of total PE investments in Q4.

Investment activity is likely to maintain a slow pace in the coming quarter as PE firms focus on creating value and identifying potential targets active in recession-resistant sectors such as the information technology and healthcare.

This edition of the Global Private Equity Factbook offers insights on global PE investment activity, features key sectors targeted, and provides an outlook for the industry in the coming quarters.