The PitchBook report on European private equity in Q2 2022 shows that despite a tightening policy environment and valuations adjustments, sponsor-to-sponsor equity dealmaking remains resilient. The first half saw robust exits, with sponsors taking advantage of lower multiples and the market dislocation caused by falling stock markets and company deleveraging. Portfolio exits are expected to be the most resilient in 2022, with take-private and carveouts being standout themes. Private credit funds have kept the deal environment moving, and sponsors are doubling down on their investment sweet spots. The report concludes that corporates will be more focused on short-term strengthening of balance sheets, making them more cautious in buying PE-backed companies.
