PE avg. holding period reaches an all-time high of 5.8 years

Hey everyone,

We recently analyzed deal data for entries and exits for private equity investments in Europe.

And we found that the holding periods of investments has reached an all time high of 5.8 years (up from 4.9 years in 2020).

A few other interesting data points:

1. 56% of assets that exited in 2023/24 stayed longer than 5 years in the portfolio up from 40% in 2020

2. Consumer assets have seen the largest jump in holding periods. On average it takes a Consumer asset 6.3 years to exit. Assets in Energy & Materials (6.3 years) and Industrials (5.8 years) are also characterized by long holding periods.

3. Assets with longest holding periods (7+ years and often unsold) tend to have slower growth rates and lower margins (by a third).