Private equity exits rise as returns fall

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After years of waiting for valuations to bounce back, private equity is finally getting its fix; exiting more deals but at lower prices.

The number of global private equity outflows increased by 5.4% to 3,149 last year. data From S&P Global Market Intelligence. However, data showed that the total value of these deals fell by 21.2% annually to $412.1 billion.

This dynamic is emblematic of an industry under pressure to monetise aging assets and finally recalibrating its expectations. The challenges extend into 2022. S&P 500 It fell by 19 percent due to the impact of rising interest rates. Many private equity firms have chosen not to reduce the value of their portfolio companies. openness For what potential buyers are willing to pay (either through a sale or an initial public offering), according to the Center for Economic and Policy Research.

Stagnant exits for years have created a backlog of tens of thousands of companies that have yet to find a way out. As a result, investors in private equity funds, known as limited partners or LPs, saw lower amounts of cash returned to them. This has made LPs hesitant to pour more capital into private equity. Fundraising declines 11% to $490.81 billion in 2025; This was the second consecutive annual slowdown. S&P.

This shift has also made private equity firms more hesitant to deploy capital into new deals. The value of private equity deals in the US increased in the first half of last year, but the number of deployments remained steady. According to one study, this means “concentrated success in closing larger deals, but a continued stagnation in overall deal activity.” report From PwC.

There are signs that this larger group of funds within private equity is also benefiting from a monetization perspective. Blackstone, which announced earnings last week, said its private equity portfolio generated $10.8 billion from exits in the fourth quarter. This was the highest quarterly total of the year, with a realization of $33.9 billion, according to the firm’s investor. presentation.

Open Blackstone’s On the earnings call, President and Chief Operating Officer Jonathan Gray said “realizations are starting to accelerate.” Michael Chae, the firm’s chief financial officer, added: “The backdrop has become much more constructive in terms of net realizations… overall, our embedded value and realization potential are significant and we are quite optimistic about the firm’s multi-year outlook.”

Blackstone and a consortium of peers succeed in acquiring medical supplies company Medline IPO in December – largest private equity-backed IPO ever listed in the US

Medline, which manufactures and sells everything from exam gloves to wound care products to protective clothing, generated over 2019 revenues. 7 billion dollars at an increased bid. The stock is up nearly 30% since its debut, which bodes well for subsequent IPOs by private equity-backed companies.

This week, we’ll hear from a few more private equity firms reporting earnings. KKR It will announce its fourth quarter figures on Thursday. Carlyle It is planned for Friday. Apollo The results are scheduled to be announced on February 9.