PitchBook：2022年欧洲私募股权报告（EN）

€185.9

€224.5

€287.7

€406.7

€335.9

€432.0

€513.6

€479.4

€449.0

€721.3

€463.5

7,100

4,667

4,707

4,474

4,293

4,093

4,080

4,053

Q2

2022

3,380

2,810

2,922

EUROPEAN

PEBreakdown

20122013201420152016201720182019202020212022

Dealvalue(€B)Estimateddealvalue(€B)DealcountEstimateddealcount

Contents

PitchBookData,Inc.

JohnGabbertFounder,CEO

NizarTarhuniSeniorDirector,InstitutionalResearch&EditorialDylanCox,CFAHeadofPrivateMarketsResearch

InstitutionalResearchGroup

Analysis

3

Introduction

4

Overview

8

Dealsbysizeandsector

9

Spotlight:HowPEfirmswillnavigatetoday’s

complexmacroenvironment

11

Exits

DominickMondesir

SeniorAnalyst,EMEAPrivateCapital

14

Fundraising

Data

CharlieFarber

SeniorDataAnalyst

pbinstitutionalresearch@

Publishing

ReportdesignedbyChloeLadwig

PublishedonJuly18,2022

Click

here

forPitchBook’sreportmethodologies.

2Q22022EUROPEANPEBREAKDOWN

Introduction

Despiteatighterpolicyenvironment,Europeanprivateequity(PE)dealmakingcontinuestobeincrediblyresilientinH12022.Sponsors’recorddrypowderlevels,andtheriseofprivatecreditfundshaskeptthedealsenvironmentmoving,asthesyndicatedloanandhighyielddebtmarketscomeunderstress.Sponsorsdoubleddownontheirinvestmentsweetspots,astheywereabletotakeadvantageofsoftermultiples.Take-privateandcarveoutsareexpectedtobestandoutthemesof2022,dueinparttofallingstockmarketsandcompaniesde-leveragingtostrengthenbalancesheets.Thebusinessproducts&servicessectorroaredtonewhighsinthefirsthalf,whilesponsorscontinuedtodoubledownoninformationtechnology(IT)assets,whichaccountedfornearlyonequarterofPEdealvolume.Inthesecondhalfoftheyear,weexpectamorepressuriseddealmakingenvironmentduetohawkishforwardguidance,slowingGDPgrowth,rapidlydecliningconsumerconfidence,andincreasinginterestrates,whichislikelytocausearecession.

Unsurprisingly,EuropeanPEexitactivitycontinueditsslowstarttotheyear.Thesharpdeclineinexitactivityisaresultofthecocktailofnear-termriskstotheEuropeaneconomyincludingthegeopoliticalconflictinUkraine,persistentinflation,downsidepublicmarketvolatility,andmonetarytightening.Publiclistings,whichdrovetheimpressiveexitactivityin2021havediminishedasPEfirmsshunthepublicmarketsduetoheightenedvolatility

andsharpvaluationadjustments.Sponsor-to-sponsorexitswerethemostrobustexittypeinthefirsthalf,assponsorsarmedwithbillionsindrypowderwerecautiouslyaggressiveinbuyingPE-backedcompanies.Despitethenear-termheadwindstostrategics,theycontinuedtoacquirePE-backedcompanies,thoughatasubstantiallylowerclipthanlastyear.Weexpectportfolioexitstosponsorswillbethemostresilientin2022,ascashrichPEfirmstakeadvantageoflowermultiplesandthemarketdislocation.Corporateswillbemorefocusedontheshort-termpressuresofkeepingstockpricesaloft,supplychains,labourissues,andrampantinflation.

Liquidityinthefundraisingmarketisweakeningduetocyclicalforcesandreducingconfidence.Thefundraisingmarketisfacingseveralheadwinds,causingmaterialsqueezesonnewcapitalcommitmentsduetoLPsstrugglingtokeepupwithre-updemandfromexistingGPs.Thefallindistributionsduetoaweakexitmarkethasalsoreducedcapitalraisednumbers,asthosedistributedproceedsareusuallyrecycledbackintoPEfunds.Inaddition,quicklydecliningstockmarketsarecausingmorecautionfromLPsinallocatingtoPEfundsasthepotentialforthedenominatoreffectrises.However,againstthisvolatileandhawkishmacroeconomicbackdrop,strategiesincludingdistressedandprivatecredit,whichpossessconsiderabledownsideprotectionandfloatingratestructures,areseeinggreatertraction.

3

Q2

2022

EUROPEAN

PEBREAKDOWN

INTRODUCTION

€185.9

€224.5

€287.7

€406.7

€335.9

€432.0

€513.6

€479.4

€449.0

€721.3

€463.5

4,474

4,293

4,093

4,080

3,380

2,922

2,810

Overview

PEdealactivity

7,100

4,707

4,667

4,053

2012

2013

2014201520162017

Dealvalue(€B)Estimateddealvalue(€B)

2018

Dealcount

2019202020212022*

Estimateddealcount

Source:PitchBook|Geography:Europe*AsofJune30,2022

Despiteatighterpolicyenvironmentandcontinueddownsidevolatility,EuropeanPEdealmakingcontinuestobeincrediblyresilientinH12022.Inthefirsthalfoftheyear,4,053dealsclosed,worth€463.5billion—markingYoYincreasesof16.2%and34.8%,respectively.Itisclearthatdealsize,notdealcount,wasbehindtherecorddealvalueastransactionsgotlarger.Themediandealsizeacceleratedto€47.6million,anddealssizedgreaterthan€2.5billionhikednearlythreetimesindealvaluefromH12021,themostofanydealsizebucket.Asthesyndicatedloanandhighyielddebtmarketscomeunderstress,sponsors’recorddrypowderlevelsandtheriseofprivatecreditfundsfinancingdealshaskeptthedealsenvironmentmoving.PEfirmstendtobelong-termstrategicacquirers,meaningtheyhavethetime,

capital,andresourcestorideoutmarketvolatility,asexitsarenotexpecteduntilatleastfiveyearsdowntheline.Thiscertainlyhelpeddealactivitygetofftoastrongopeninghalf.Sponsorsdoubleddownontheirinvestmentsweetspots,astheywereabletotakeadvantageofsoftermultiples.Forinstance,inthelargestdealof

H1,Blackstone(NYSE:BX)recapitalisedNetherlands-headquarteredMilewayfor€24.0billion.InvestinginlastmilelogisticsbusinesseshasbeenBlackstone’sstrongestconvictiontradegloballyoverthepastdecade,andit’snotslowingdown.Mileway’smanagementteamhasgrownthecompanyintothelargestlastmilelogisticsportfolioinEurope,anditappearsthesector’sresiliencyandstronggrowthpotentialcontinuestopushsponsorswithdeepsub-sectorexpertisetowardsthespace.

4

Q2

2022

EUROPEAN

PEBREAKDOWN

OVERVIEW

7.5x

6.1x

6.2x

6.3x

6.8x

6.2x

6.2x

6.3x

5.2x

4.9x

6.5x

7.0x

6.6x

6.3x

5.4x

5.4x

4.8x

4.9x

4.7x

4.8x

4.8x6.5x

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022*

MedianEV/EBITDAbuyoutmultiple

14.0x

13.2x

12.7x

12.2x

12.8x

.1x10.9x11.0x

11

11.4x

10.3x

10.0x

20122013201420152016

Debt/EBITDA

Inthesecondhalfoftheyear,weexpectamorepressuriseddealmakingenvironmentduetorapidlydecliningconsumerandbusinessconfidence,risinghighyieldcreditspreads,fallingGDP,acceleratinginflation,andtheexpectationoffurtherinterestrateincreases,whichislikelytocausearecessionunderpinnedbystagflation.UKconsumerconfidencerecentlydroppedtoarecordlow,1GDPfell0.3%betweenMarchandAprilintheUK,2andinflationcontinuestorunredhotinthecontinent,withtheEurozonepostingaconsumerpriceindexreadingof8.6%inJune3—afreshrecord.Furthermore,theBankofEngland(BoE)expectsinflationtoexceed11%inOctober,4andtheEuropeanCentralBankisslatedtostartmonetarytighteninginJulywitha25-basis-pointhikeofinterestrates,andafurther50-basis-pointincreaseanticipatedinSeptember.TheBoEhasalreadyraisedinterestratesatitslastfiveconsecutivemeetings,andmanyexpertsexpecttheUK’sbaseratetohit3%byyearendtocombatrisingprices.5Acceleratinginflationandrisingdiscountrateswillincreasecostsattheportfoliocompanylevel,reducevaluations,andincreasethecostofleveragefornewPEdeals.HigherinflationisnowhardwiredintoroutinePEdealdecisions,andcompaniesthatdon’thavetheability

2022*

2020

2021

201720182019

Equity/EBITDAEV/EBITDA

Source:PitchBook|Geography:Europe*AsofJune30,2022

topassonhighercoststotheconsumerarelikelybeingshunnedbydealmakers,possiblyresultingingreateractivityininfrastructure,energy,andhealthcarespaces—threehistoricallyinflationhedgingsectors.

EuroareaandUK12-monthpercentagechangeininflation

9.1%

10%

8.1%

8%

6%

4%

2%

0%

-2%

EUROZoneHCPIUKCPI

Source:ONS,Eurostat|Geography:Europe*AsofMay31,2022

1:“UKConsumerConfidenceFallstoLowestLevelSinceRecordsBegan,”FinancialTimes,ValentinaRomei,June24,2022.

2:“SterlingFallsto2-YearLowAgainstDollarAfterUKEconomyContracts,”FinancialTimes,ValentinaRomeiandTommyStubbington,June13,2022.

3:“Euro-ZoneInflationHitsRecord,BoostingCaseforBigHikes,”Bloomberg,AndrewLangley,July1,2022.

4:IBID.

:“UKLendersRaiseMortgageRatesAheadofFurtherAnticipatedBoEHikes,”FinancialTimes,StephenMorris,JamesPickfordandSiddharthVenkataramakrishnan,June17,2022.

5

5

Q2

2022

EUROPEAN

PEBREAKDOWN

OVERVIEW

€8.2

€10.9

€4.6

€13.6

€6.5

€14.1

€25.2

€21.4

€18.0

€46.8

€17.5

31

30

30

30

29

20

Take-privatePEdealactivity

46

34

34

20

9

2012

2013

2014

2015

2017

2016

2018

Dealvalue(€B)Dealcount

2019202020212022*

Source:PitchBook|Geography:Europe*AsofJune30,2022

Take-privateactivitypickedupinthesecondquarteroftheyear.€17.5billionworthoftake-privatedealvalueclosedinH12022,up22.4%fromthefirsthalfof2021.Atthestartoftheyear,wementionedtake-privateswouldbeamajorthemeacrossPE,andweexpectthiswillcontinueinH2.Withpublicmarketsprimarilymovinginadownwardtrend,andsponsorsflushwithcash,take-privatesareofferingoneofthebestrisk-rewardplaysforPEfirms.WiththeNasdaqinbearmarketterritory,andseveralotherindicesdown10%-plusfromrecenthighs,sponsorsareaggressivelypouncingoncheaperassetprices.BlackstoneandtheBenettonfamilyrecentlybidtotake-privateItaly-headquarteredAtlantia(MIL:ATL)foraround€54billion6—whichwouldbeEurope’slargesteverpublictoprivatetransaction,reflectingthepositivetonetowardssuchdeals.Butthelargestclosedtake-privateinH1sawPermiradelistUK-headquarteredMimecastfromtheNasdaqfor€5.5billion.Withpricesaggressivelyfallingacrosspublicmarkets—especiallyforhigh-growthtechnologycompaniesduetotheirfuturecashflow’sdisproportionatesensitivitytointerestrateincreases—manymanagementteamswilllikelylooktocashoutnowasweneartheendofthebullcycle.Cashrichsponsorswillbewillingbuyersofassetsthatarecyclicallybutnotsecularlyunderpressureasvaluationsfalltomorereasonablelevels.WithMimecastspecialisingincybersecurityforemail,itappearsPermirabelievestheseculartailwindsforthecompanyarestrong,duetohybridworkbecomingubiquitousandemailbeingthepredominantvectorforcyberattacks,phishing,andimpersonationattempts.

ShareofPEdealcountbysector

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022*

Materials&

resources

IT

Healthcare

FinancialservicesEnergy

products

Consumer

&services

Businessproducts&services

Source:PitchBook|Geography:Europe*AsofJune30,2022

Thebusinessproducts&servicessectorroaredtonewhighsinthefirsthalf.Thesectoraccountedfor€124.2billionindealvalueinH1—itshighesteverfirsthalffigure.Ifthispaceofactivityiskeptupbyyearend,thesectorwillhitanewrecord.Aswemovetowardsapotentialrecession,businessproducts&servicesconsumptiontendsbeoneofthemoreresilientareasacrosstheeconomy,whileconsumerproducts&servicesoftengetshitthehardestasdiscretionary

9:“gle)入s\0n?enpg?n?\\0n」emilygip\0Te入?l\ely’sA\len\iedJive\?in寺SFqn0?el,”FinancialTimes,〉ey?Wi88insenp3veSzeley,AdJilLF,Z0ZZ.

6

Q2

2022

EUROPEAN

PEBREAKDOWN

OVERVIEW

€40.0

€37.9

€45.9

€74.5

€58.8

€60.0

€90.2

€68.7

€55.3

€89.2

€36.2

spendingquicklyfallsduetomorelayoffsandwagesnotrisingasfastasinflation.Severalcompaniesinthebusinessproducts&servicessectorareproducingmissioncriticalproductsandservicesforthousandsofglobalbusinesses,meaningthey’relikelytomaintainorevengrowrevenuesintimesofmacroeconomicdistress,andthisispartlywhysponsorsareleaningintothesector.Thethreelargestdealsinthefirsthalfoftheyearcamefromthebusinessproducts&servicesspace,mostnotablythecommercialservicessub-sector.InthesecondlargestdealofH1,Italy-based

Carveoutdealactivity

AutostradeperI’Italia(ASPI)wasacquiredbyBlackstone,state-controlledCassaDepositiePrestiti,andMacquarieAssetManagementfor€9.3billion.ASPImanagesmorethan3,000kilometersoftollroadsacrossItalyunderlong-termcontractsbytheItalianstate.Stickycashflowsfromlong-termrecurringrevenuecontractsforcriticalinfrastructureareextremelyattractiveinanyenvironment,butespeciallyasadownturnapproaches.CompanieswithstrongbalancesheetsofferingmissioncriticalproductsandserviceswillcontinuetoseeoutsizedinterestfromPEfirms.

618

549

493

505

472

479

454

449

423

422

181

2012

2013

2014

2015

2017

2016

2018

Dealvalue(€B)Dealcount

2019202020212022*

Source:PitchBook|Geography:Europe*AsofJune30,2022

Althoughcarveoutactivityhashadaslowopeninghalf,weexpectthisdealtypetobeamajorthemeacrossPEinH2andcontinuinginto2023.Asstagflationbites,interestratesrise,andconsumerspendingfalls,companieswillseektostrengthenbalancesheets,maintainmargins,deleverage,andexitnon-coreassetsviacarveouts.Sponsorswillbewillingbuyersofsuchassetsduetothecomplexitypremiumthatoftencomesattachedwithdivestitures,andsellerswillpreferPEacquirersasopposedtostrategicsdueinparttolessregulatoryscrutiny.VeoneerrecentlyagreedtocarveoutitsArriverbusinesstoQualcomm(NASDAQ:QCOM),asitseekstofocusonitsoutperformingunitsofTier-1supplieranditsintegratorbusiness.Inanotherexample,Switzerland-headquarteredSwissPostSolutions(SPS)wasdivestedtoASEquityPartnersfor€366.5millioninQ1.TheparentcompanyofSPSdecidedtoexititsSPSbusiness,astheentitydidnotalignwiththe“SwissPostoftomorrow”strategy,whichfocusesonitscorebusinessoflogisticsandcommunicationinSwitzerlandalone.

USandEuropeanhigh-yieldoption-adjustedspread

12%

10%

8%

6%

4%

2%

0%

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022*

6.4%5.9%

USHYOAS

EuropeanHYOAS

Source:FRED|Geography:Global*AsofJune30,2022

7

Q2

2022

EUROPEAN

PEBREAKDOWN

OVERVIEW

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022*

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022*

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022*

Dealsbysizeandsector

ShareofPEdealcountbysizebucket

€2.5B+

€1B-€2.5B

€500M-

€1B

€100M-

€500M

€25M-

€100M

<€25M

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Source:PitchBook

|Geography:Europe*AsofJune30,2022

ShareofPEdealcountbyregion

UK&Ireland

Southern

Europe

Nordics

Israel

France&Benelux

100%

90%

80%

70%

60%

50%

DACH

Central&EasternEurope

40%

30%

20%

10%

0%

Source:PitchBook

|Geography:Europe*AsofJune30,2022

ShareofPEdealvaluebysizebucket

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022*

€2.5B+

€1B-€2.5B

€500M-

€1B

€100M-

€500M

€25M-

€100M

<€25M

Source:PitchBook

|Geography:Europe*AsofJune30,2022

ShareofPEdealvaluebyregion

UK&Ireland

Southern

Europe

Nordics

Israel

France&

Benelux

DACH

Central&EasternEurope

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Source:PitchBook

|Geography:Europe*AsofJune30,2022

8Q22022EUROPEANPEBREAKDOWNDEALSBYSIZEANDSECTOR

SPOTLIGHT

HowPEfirmswillnavigatetoday’scomplexmacroenvironment

Valuationsandfundperformance

140

130

120

110

100

90

Dec2020

Jan

2021

FebMar

AprMay

S&P500

JunJulAugSepOct

NASDAQcompositeFTSE100

NovDec

Jan

2022

FebMar

Source:PitchBook|Geography:Global*AsofMay19,2022

Note:Thisspotlightisabridgedfromour

AnalystNote:How

PEFirmsWillNavigateToday’sComplexMacroEnvironment.

Pleaseseethefullnoteforadditionalanalysisonfundperformance,dealactivity,exits,andmore.

Valuationsandfundperformance

Risinginterestrateswillhavedeleteriouseffectsonassetprices—itisonlyamatteroftheextent.TheUSFedraisedshort-termratesby50basispointsinMay,andmarketexpectationspointtoanapproximately3%fedfundsratebyyearend2022.Assetswithhighdurationwillbemostnegativelyaffected.Profitablecompaniesatlowermultipleshaveseenlessdownwardpressureontheirvaluationsthanhigh-growthcompanieswhereprofitsaremanyyearsoff.Themostexpensivestocksaredowntoafargreaterdegreethanthecheapestones.Similarly,manyventurecapital-backedcompaniesarebeingpummeled.Withpubliccompsdownanddiscountratesup,PEportfoliocompanies,too,

areunderpressure.BlackstoneandKKR(NYSE:KKR),whichhaveinvestedheavilyinmorequicklygrowingsectors,posted-3%and-5%grossPEreturns,respectively,inQ12022.Meanwhile,Apollo(NYSE:APO),whichisknownforitsvalueinvestmentphilosophyinitsPEstrategy,faredmuchbetter,registeringan8%gaininthequarter.ApolloXIboughtintoitscompaniesatanaverage6.5xEV/EBITDAvaluation,wellbelowthe10xto14xatwhichmanyothersofasimilarsizetransactedinrecentyears.Inthecomingquarters,companiesthathadinvestedmostheavilyinthehigh-growthtechnologysectormayfacethelargestvaluationandperformanceheadwinds.

SoftwarewillpersistinPE

GrowthintechnologyanddigitalizationacrossindustriesdrovePEtorecorddealandexitactivityin2021,onlytofaceseveralheadwindsearlyinthenewyear.Fearsofrisinginterestratesledtechstockstotumblethroughout2022,

9Q22022EUROPEANPEBREAKDOWNSPOTLIGHT:HOWPEFIRMSWILLNAVIGATETODAY’SCOMPLEXMACROENVIRONMENT

puttingpressureontheloftyvaluationsenjoyedbythesectorforthelastseveralyears.ContinuedmarketturbulencecoupledwithmajortechcompaniesmissingearningstargetsspurredmajorselloffsinthestockmarketthroughoutQ22022.Growth-orientedtechcompaniesfelloutoffavourashigherinterestratesreducednetpresentvalueofexpectedearningsthatreliedheavilyonfutureprofitgrowth.Sometechstockstradedatsingle-digitmultiplesonEBITDAandlowdoubledigitsonearnings,asharpturnfromthebullmarkettechhasenjoyedforthelastdecade.

Sponsor-ledsecondariesandfullliquidityalternativeswillseefurtherinterest

Inadditiontoholdingcompanieslonger,manyfirms

willlooktousealternativemethodsofdelivering—oratleastoffering—returnstoLPsintheinterim.TheGP-ledsecondariesmarkethasdramaticallyexpandedandevolvedinrecentyears.AccordingtoJefferies,

thissegmentofthe

markethasoutgrowntheLP-ledside

,accountingformorethanhalfofalltransactionvaluethepasttwoyears.SomePEfirmschoosingtoholdontoportfoliocompaniesmaybe

holdingassetsinafundnearingtheendofitspredefinedlife.Thiswillbetheimpetusformanycontinuationfunds,whichprovideexitopportunitiesforLPswhileallowingthesponsortoretaincontrolforseveraladditionalyears.OthermanagersmayturntoGP-leddealstocrystallizevalueandrecapitalisehighlyperformingcompanies.Thishasthebenefitofprovidingadditionalgrowthcapitaltothesecompanies,preventingoverconcentrationtooneortwoassetsinafund,andprovingthestrengthofamanager’sreturnstoLPs.PerhapsthebestexampleofthesetrendsisClearlake.ThefirmhasrecentlyuppeditsuseofsingleassetGP-leddealswithitsIconseries.Thishasclearlyillustratedthefirm’sabilitytoproducereturns,andthefirmhasbeenrewardedbyLPs.Clearlakeclosedon€13.3billioninMay2022—anear100%step-upfromthe€6.4billionClearlakeraisedin2020—duringoneofthemorechallengingfundraisingperiodsinrecentyearswithGPsseekingfarmorecapitalthanLPscansupply.Thismacroeconomicbackdropalsomeansfirmsarelikelytoincreasetheiruseofrecaps—ofbothcompaniesandfunds—andpartialsales,whichatleastreturnaportionofthetotalEVtofundinvestors.

10Q22022EUROPEANPEBREAKDOWNSPOTLIGHT:HOWPEFIRMSWILLNAVIGATETODAY’SCOMPLEXMACROENVIRONMENT

€127.5

€170.5

€234.6

€279.4

€228.4

€273.8

€265.7

€229.7

€210.4

€462.5

€157.8

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

1,058

1,091

999

812

Exits

EuropeanPEexitactivitycontinueditsslowstarttotheyear,especiallyexitvalue.InH1,739PE-backedcompaniesexitedforacumulativevalueof€157.8billion,markingaYoYdecreaseof25.3%inexitvalue,whileexitvolumeremainedflat.Thesharpdeclineinexitvalueisaresultofthecocktailofnear-termrisksthattheEuropeaneconomyfacesincludinggeopoliticalconflictinUkraine,persistentinflation,downsidepublicmarketvolatility,andmonetarytightening.Publiclistings,whichdrovetheimpressiveexitactivityin2021,havediminishedasPEfirmsshunthepublicmarketsduetoheightenedvolatilityandsharpvaluationadjustments.Theexit-to-investmentratiohasincreasedto2.6x,whichisapproachinglevelslastseenin2008and2009.Weexpectportfolioexitstosponsorswillbethemostresilientin2022,ascashrichPEfirmslooktotakeadvantageoflowermultiplesandthemarketdislocation.OntheIPOfront,ifwedoseevolatilitysettleinH2,publiclistingscouldmakeacomeback,albeitatsoftervaluations,asillustratedbyPE-backedJoe&theJuiceannouncingtheycouldIPOinH2.Themedianexitsizedroppedto€151.6millionattheendofthefirsthalf,reflectingthelowervaluationenvironment.Lookingahead,duetothebulkofsponsorreturnscomingfrommultipleexpansion,therisinginterestrateenvironmentcouldseeexitactivityreducefurtherasmultiplesflattenandassponsorsholdassetslongeruntilreturntargetsaremet.Ifsponsorswanttokeepreturnshighandexitsmoving,theremustbegreateremphasisonorganicgrowthmeasures—includingmarginexpansionandrevenuegrowth—acrosstheportfolio.

PEexitactivity

1,583

1,375

1,386

1,287

1,217

1,248

739

20122013201420152016201720182019202020212022*

Exitvalue(€B)Estimatedexitvalue(€B)ExitcountEstimatedexitcount

Source:PitchBook|Geography:Europe*AsofJune30,2022

Sponsor-to-sponsorexitswerethemostrobustexittypeinthefirsthalf,assponsorsarmedwithbillionsindrypowderwerecautiouslyaggressiveinbuyingPE-backedcompanies.InH1,234liquidityeventscamefromsponsor-to-sponsorexits,themostofanyexittype,andaccountingformorethanhalfofallexitsforthefirsttime.Ifthispaceiskeptupbyyearend,thiswill

PEexitcountbytype

Public

listingBuyout

Acquisition

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

20122013201420152016201720182019202020212022*

Source:PitchBook|Geography:Europe*AsofJune30,2022

11

Q2

2022

EUROPEAN

PEBREAKDOWN

EXITS

€12.1

€32.3

€50.9

€51.2

€31.7

€26.8

€24.4

€26.5

€34.9

€101.5

€8.0

8

IPOPEexitactivity

133

95

84

77

63

58

42

34

45

25

2012

2013

2014

2015

201620172018

Exitvalue(€B)Exitcount

2019202020212022*

Source:PitchBook|Geography:Europe*AsofJune30,2022

bethefirstyearthatsponsor-to-sponsorexitsoutpacecorporateacquisitions.WithLPscontinuingtocommitcapitaltoPEfunds—albeitat