Global private equity entries slip YOY in May

Global private equity and venture capital deal value saw a year-over-year decline in May, as entries dipped 28.8% to $43.31 billion from $60.84 billion in the same month in 2022.

However, month over month, entry value was up 55% in May, according to S&P Global Market Intelligence data, raising hopes that the appetite for deals will revive in the second half of the year.

The number of announced deals in May declined 37.7% to 881 from 1,415 a year ago.

The US and Canada continued to be the hotspot for private equity deals, recording $22.59 billion in investments. Europe and Asia-Pacific were next, with $10 billion and $8.54 billion, respectively.

There were 303 deals in the US and Canada, 245 in Europe and 282 in Asia-Pacific.

Aggregate deal value in the first five months of 2023 was $192.86 billion, down 49.7% year over year from $383.45 billion in 2022. The number of transactions slid 39.1% to 4,822 from 7,919 deals.

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The healthcare sector received the most capital from investors during the month, bringing in $10.70 billion in total transaction value, up from $9.14 billion in the same period in 2022.

The technology, media and telecommunications sector reached $9.02 billion in total deal value, down from $19.54 billion in the same month a year ago. Private equity investment in the materials sector soared in May, securing $4.76 billion from $351 million a year ago.

In the largest deal in May, an investor group comprising Patient Square Capital LP, Veritas Capital Fund Management LLC and Elliott Investment Management LP agreed to buy biopharmaceutical company Syneos Health Inc. for $7.37 billion. The buyers will pay $43.00 per Syneos share in cash.

The second-biggest deal was the announced acquisition of aluminum sheet maker Arconic Corp. by funds managed by Apollo Global Management Inc. affiliates for $4.57 billion. The deal will include a minority investment from funds managed by Irenic Capital Management LP affiliates.