PE/VC Exits Worth Over $4 Billion Recorded Via Open Market In Q1 2024: EY

Private equity and venture capital exits were recorded at $5.1 billion across 80 deals in the first quarter of 2024, an increase of 35% annually and a 23% decrease sequentially. The surge comes on the back of several private equity investors selling partial stakes in the companies amid positive stock market sentiment and a surge in demand in the primary market.

Open-market exits accounted for 84% of all exits by value, with $4.3 billion recorded across 46 deals with a 105% growth year-on-year. In the first quarter of 2023, there were open market exits worth $2.1 billion across 19 deals, according to an EY-IVCA report that was released on Monday.

In terms of the number of exits, there was a 23% growth at 80 exits in comparison to 65 exits in the first quarter of 2023, a 3% rise from 78 exits in the fourth quarter of 2023.

The largest exit in the first quarter was Brookfield's exit from Data Infrastructure Trust for $801 million. Strategic exits ranked second, with $460 million recorded across 13 deals, a decline of 4% from the same period a year ago.

PE-backed initial-public-offering exits worth $271 million across 11 deals were 539% higher than the year-ago period, followed by secondary exits recording $59 million across 10 deals, a significant drop of 95%.

From a sector perspective, the financial services sector recorded the highest value of exits at $1.4 billion across 17 deals, followed by the infrastructure sector with exits worth $803 million across six deals. Food and agriculture secured the third rank, with exits worth $517 million across eight deals.

The first quarter recorded $13.5 billion in PE/VC investments, which was 1% lower than the previous year but 41% higher sequentially. However, the number of deals was higher by 33% year-on-year, according to the report.