PE deal making in 2021 set an all-time high. Overall deal volume increased by 35 percent from the previous year while deal value jumped by 77 percent on the back of many high-value transactions.
Among other factors, M&A was driven by ample dry powder, ultra-low interest rates, and possible hikes to capital gains and corporate taxes which accelerated deals before policy implementation.
A deeper look at these PE trends reveals key characteristics of the market last year.
Looking ahead to 2022, abundant liquidity and dry powder are likely to drive continued high levels of PE M&A activity. But growth may cool somewhat due to a more hawkish monetary policy, inflation, high valuation multiples, and other headwinds. Overall deal appetite remains strong. According to a yearend KPMG survey, 65 percent of senior executive respondents plan to increase their deal activity in 2022.
PE Deal Volume and Deal Value ($ Billion)
PE Deal Volume and Deal Value
Our 2021 report unpacks these trends and what’s ahead—including deep dives on three topics:
Procurement excellence: Helping portfolio companies deal with cost pressures
ESG: Getting serious about ESG
Download the full report to uncover what is happening in PE, how deals are being done today—and why.