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PitchBook Analyst Note: The Growing Prominence of US PE Mega-Deals and Exits

Q1 2022

PitchBook Analyst Note: The Growing Prominence of US PE Mega-Deals and Exits

March 3, 2022

PitchBook Analyst Note: The Growing Prominence of US PE Mega-Deals and Exits
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US PE mega-deals and exits are rapidly gaining steam 

In 2021, PE firms pursued massive deals fortified by low interest rates, an excess of dry powder, and the growing crowd of mega-funds. The trend toward larger deals was pervasive, as indicated by mega-deals–transactions sized $1 billion or more–accounting for 32% of all US PE deal activity. 

Simultaneously, PE firms successfully exited portfolio companies at impressive values, thanks to elevated transaction multiples across sectors and cash-rich buyers. 

Our latest analyst note breaks down the data behind PE mega-deals.

Key takeaways
 
  • 2021 witnessed the hottest year in both mega-deal and mega-exit activity, setting records in transaction count and value. 
 
  • Public listings dominated mega-exits, compared with exits to corporates and other sponsors, with 75 PE-backed companies listed at valuations above $1 billion, a record far beyond previous annual numbers.
 
  • Macroeconomic factors such as expected interest rate hikes and increased government scrutiny for large M&A could impede mega-deal and mega-exit activity in the near future, but many investors maintain their positive growth outlook.

 

Table of contents
Key takeaways 1
Introduction 2
Mega-deals 3
Mega-exits 6
Going forward 12