Q1 2022
PitchBook Analyst Note: The Growing Prominence of US PE Mega-Deals and Exits
March 3, 2022
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
Table of contents
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 |