Private Equity Stays Flat, While VCs Soar in Public Market Exits

This year’s public market exits painted contrasting pictures for private equity (PE) and venture capital (VC) firms. VC firms surged ahead, raking in $4.06 billion till November—double their previous year’s earnings—while PE firms stayed flat at $13.3 billion. Blackstone’s $808 million exit from Mphasis played a crucial role in keeping PE numbers steady; without it, their figures would have dipped below last year’s. Over the past five years, the consistency in PE exits reflects a strong appetite among public market investors. One of the standout PE deals this year was Blackstone’s June sale of a 15% stake in IT services giant Mphasis, reducing its holding to 40%. Other notable transactions included Peak XV, Norwest, and TPG Capital divesting 11% of Five Star Business Finance for $536 million, and Warburg Pincus cashing out its 9.17% stake in Kalyan Jewellers India for $451 million. VC firms seized the momentum of a thriving IPO market and managed to rake in $4 billion and outpaced the funding boom of 2021 when VCs earned $3.3 billion. Nearly 90% of PE exits this year came from bulk or block deals, while IPO-driven exits climbed slightly to 16% from 11% last year.

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