Q4 2022 Investment Activity: IT Deals Dominate, Buyout Entry Multiples Continue to Rise

The holdings universe now contains nearly 240,000 unique underlying investments dating back to 1984 with a current gross valuation of more than $5 trillion.

Here are some of the highlights from our Q4 2022 update to the holdings universe:

• While Information Technology represents the largest sector at 25% of the private capital universe (down slightly from 28% one year prior), Industrials is now the second-largest sector at 13% of the current valuation.

• Amongst 2022 Buyout funds, just over 50% of capital has been deployed into Information Technology companies so far—a rise above the 33% of capital for Buyout funds with a vintage year of 2021 as well as earlier vintages, which hover around 25%.

• Approximately 50% of 2022 Venture Capital deals were also Information Technology companies, although this figure has been 40–45% and rising in recent vintages.

• Buyout-held companies saw a 2022 median revenue growth of 15% and EBITDA growth of 10%, compared to 20% for both metrics in 2021. While a decline from 2021, the 2022 growth rates are amongst the highest for the last 10 years. The median Buyout-held company is valued at a 12.7x EBITDA, with Information Technology companies being held at a 15.6x median EBITDA (and a 24.2x top quartile multiple). For 2022 deals across all sectors, entry multiples hit a 10-year high with an 11.0x median multiple. Exit multiples, after peaking at 13.0x in 2021, fell to 12.0x for 2022.

If you are a Burgiss client, you can access the full versions of the Company Fundamentals Review and the Holdings Composition report on the Private i Platform home page and in the Caissa Platform Knowledge Center. Please email support@burgiss.com with any questions.

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