PE Pulse: five takeaways from 4Q 2021

Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from 4Q 2021 that are top of mind for PE investors.

PE Pulse is a quarterly report and corresponding podcast miniseries that provides analysis and insights on private equity market activity and trends.

Visit https://www.ey.com/pepulse to view this quarter’s summary and infographic.  

Five takeaways from 4Q 2021:

1. 2021 was a year for the record books for private equity (PE) firms, with investment activity surpassing the trillion-dollar mark for the first time.
2. 30% of the total capital deployed in 2021 was allocated to technology companies, followed by firms in the consumer space, which saw 24% of aggregate deals by value.
3. Growth equity funds raised US$102b throughout the year, up 53% from 2020 and up 74% from the average raised for growth funds over five years prior.
4. PE exits saw record activity levels in 2021, with value and volume seeing increases of 107% and 56%, respectively.
5. If 2021 will be remembered for anything, it will be the way that ESG and issues of sustainability catapulted to the top of PE firms’ agendas, driven by broad recognition that it’s the right thing to do and pressure from the whole gamut of PE’s stakeholder groups.