FundFire - Buyout performance 'showing cracks' but Q3 valuations move little

FundFire Senior Reporter, Tom Stabile published an article on valuation adjustments and market expectations using our Autumn 2022 Dealmaker Pulse Report as a proof point. In it, he asserts that early signals from private equity managers aren’t showing dramatic moves to reflect the market downturn through the third quarter, many are holding out for a clearer picture. However, our data has private equity professionals predicting lower valuations in the coming six months:

“Still, many buyout professionals see lower valuations ahead, according to a semi-annual DealCloud report. Its fall 2022 survey found 59% of respondents expecting lower valuations in the next six months and only 9% anticipating higher levels. That was a shift from its spring poll, when 38% of those responding forecasted lower marks and 23% saw them rising, while the fall 2021 survey showed even starker differences, with only 13% of respondents expecting lower valuations.” 

FundFire – November 30.2022

Buyout performance ‘showing cracks’ but Q3 valuations move little

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