Thank you gain.pro for an insightful report on the top 100 Private Equity firms.
Key take-aways for business owners from Chinook Capital Advisors’ perspective:
US Private Equity Market – Key 2024 Trends
- Holding Periods at Record Highs
- Median hold: 5.3 years (up from 4.2 in 2021)
- 56% of exits in 2024 were held 5+ years (up from 37% in 2020)
- Investments vs. Exits
- 2.5x more investments than exits
- Slower exits mean liquidity a growing focus
- Sector & Geographic Trends
- TMT (31%), Services (22%), and Science & Health (13%) lead PE portfolios
- Shift away from Industrials and Consumers to TMT
- PE vs. Public Markets
- PE is still small compared to public markets; US PE market manages just $2.2T in EV (just 4% of the US public market EV)
What Does This Mean for Business Owners
- Longer hold times means expect more structured exits
- No more “quick flips”
- TMT & Services attract the most capital
- Investors are doubling down on Software, Tech, & Business Services
- Fewer exits + longer hold time = Restricted liquidity & flexibility
- Explore minority shareholder liquidity options and expect a focus on value creation
Contact Ed Kirk or John O’Dore for more insights or questions on M&A markets and Private Equity.
