In the first quarter of 2023, there were 2,177 private equity deals in the U.S. with total deal value of $261.4 billion, according to a Tuesday report from PitchBook.
These figures compared with 2,205 deals and $272.6 billion in deal value in the first quarter of 2022.
For all of 2022, the number of deals totaled 9,051 with total deal value of $1.02 trillion.
In the prior full calendar year of 2021, there were a total of 9,286 deals and total deal value of $1.27 trillion.
"After showing some signs of stabilization in (fourth quarter) 2022, U.S. (private equity) dealmaking delivered a mixed verdict, with deal count faltering by another 9.3% and deal value rising by 11.4% in (first quarter) 2023," PitchBook wrote in the report. "While we are well above the pre-COVID-19 (quarterly) averages of roughly 1,400 deals and $180 billion in deal value, the trend is still flat to down, and we have yet to make a definitive bottom."
From 2013 to 2021, the total annual deal value of private equity deals surged to $1.27 trillion from $421.7 billion, before slipping to $1.024 trillion in 2022, according to charts in PitchBook's report.
Private equity managers, PitchBook noted in the report, have had to "adjust to make deals happen and keep the leveraged buyout machine functioning. Deals have gotten smaller, making them more digestible and easier to finance."
Also, in the first quarter of 2023, there were 279 exits, with exit value totaling $55.9 billion. In the first quarter of 2022, there were 329 exits with total exit value of $84.6 billion.
For all of 2022, exit counts totaled 1,341 with total exit value of $321.8 billion.
The prior calendar year, 2021, witnessed 1,792 exits with total exit value of $870.6 billion.
PitchBook commented in its report that U.S. private equity exit activity has been "disappointing" thus far in 2023.
"Both exit count and exit value declined for the third consecutive quarter as sponsors continued to struggle against prolonged inflation and unfavorable valuation adjustments," Pitchbook stated. "In a challenged exit environment, (general partners) continued to hold on to their portfolio companies instead of exiting them at lower valuations than desired."
PitchBook added that private equity firms "tend not to be forced sellers, choosing instead to hold promising assets for longer to wait until exit conditions improve."
With respect to fundraising, in the first quarter of 2023, a total of $66.8 billion of capital was raised for 73 funds that closed.
For all of 2022, $361.6 billion of capital was raised for 497 funds, compared with respective figures of $362.7 billion and 790 in the prior year.
PitchBook noted in the report that fundraising got off to a slow start in the first quarter of 2023, which "continued the trend of fewer funds raising more capital, which has persisted for many years."
