Highlights from the report:
- In 2014, the average holding period peaked at 5.9 years for companies exited.
- Last year, 1,686 exits valued at a total of $442 billion took place, indicating that general partners were still capitalizing on suitable exit opportunities for their investments.
- The lowest average holding period was 4.1 years for deals sold in 2008.
- European companies sold this year had the longest average holding period, 5.7 years, compared with 5.3 years for North America companies sold in 2015.
- Since 2006, energy and utilities companies have had the shortest average holding period, 4.3 years, while companies in the industrial sector and consumer and retail had the longest one, 5.3 years.
- Deals of $1 billion or more underwent the biggest change in average holding periods since 2006, from a low of three years in 2008 to a high of seven years in 2014.
- Average holding periods for deals in the $250 million-to-$999 million range increased from 3.2 years in 2006 to 6.4 years for portfolio companies fully exited in 2014, and for deals of less than $250 million, it increased from 3.5 years in 2008 to 5.8 years in 2014.
Source: Prequin