Global private equity deal value hits 12-month low in May
BOTH deal volume and value for global private equity (PE) and venture capital (VC) entries for May 2022 fell to their lowest monthly totals in at least a year, new data from S&P Global Market Intelligence showed.
A total value of US$52.97 billion across 1,652 entries were recorded by PE and VC firms for the month of May - with deal value down 30 per cent and entries declining 18 per cent year on year.
In its analysis released Thursday (Jun 6), the financial information services provider said the 10,017 deal entries in the year to date (YTD) were “just slightly ahead” of the 9,950 deals recorded in the first 5 months of 2021. However, it noted that the value of 2022’s YTD deals fell to US$401.53 billion from US$430.82 billion the year before – which is off nearly 7 per cent from the aggregate total.
The majority of May’s entry activity came from the US and Canada, where firms announced 565 deals worth a cumulative US$27.36 billion. A total of 447 deals were struck in Europe amounting to US$15.71 billion, and firms active in Asia-Pacific tallied 493 deals totalling US$7.92 billion.
Sector-wise, the technology, media and telecommunications space led deal value with US$17.74 billion worth of deals announced in May, albeit down more than 40 per cent from the total US$29.6 billion the previous year.
This was followed by the industrial sector, which was the second-largest contributor in terms of deal value with US$8 billion worth of deals in May - up 44 per cent from the same month a year ago.
Deals announced in the healthcare sector plunged 53 per cent year on year to US$7.62 billion.
The largest single deal to contribute to the month’s total deal value was a US$300 million venture funding round for Enavate Sciences, a new portfolio by US-based healthcare investment firm Patient Square Capital.
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