Q2 2022 PitchBook Analyst Note: Analysts Advise on Key Trends to Watch as Markets Return to Turmoil
How the current macro environment will shape PE and VC
The turbulent start to 2022 has had a profoundly negative effect on public equities, sending stocks tumbling and leading to billions of dollars in losses. The private markets aren’t immune to this volatility. VC-backed companies have announced layoffs and delayed fundraises, while PE firms balance an appetite for take-private opportunities with the very real possibility of a recession.
Our latest analyst note, the second in an ongoing series, details the potential long-term impacts of the current macro backdrop on deal activity, valuations, sustainability and more across private equity and venture capital. How will these trends play out—and where should investors be paying attention?
Table of Contents
| Introduction | 2 |
| Expectations of greater monetary tightening have shifted the asset valuation paradigm | 3 |
| The US VC deal machine will keep churning, though deal size and valuation trends will change | 4 |
| The challenges facing public equities have led VC-backed public listings to decline drastically | 5 |
| The war in Ukraine catalyzes some support and much scrutiny of sustainable investing | 6 |
| Rising inflation is neither wholly good nor bad—it will depend | 7 |
| Given the persistent downside volatility in liquid markets, take-privates will be a standout PE theme | 8 |
| Private equity fundraising activity set to struggle | 9 |
| PE’s appetite for IT remains unwavering despite hiccups from inflationary pressures | 10 |
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