PE Pulse: Five takeaways from 1Q 2022

Companies of all sizes may need to continually assess where outsourcing can create value for stakeholders. Areas that are not core value-creating activities and those where the company lags in technology or cost efficiency can be strategic outsourcing candidates. 

Five takeaways from 1Q 2022:

1. The macroeconomic environment is top of mind for investors as uncertainty impacts growth, inflation and interest rates
2. PE deal activity decreases 27% from 1Q 2021: despite a softening in activity from the breakneck pace of last year, this level of activity is still quite robust
3. Geopolitical uncertainty: PE firms are using the same playbook they used during the COVID-19 pandemic to manage the impact from the war in Ukraine
4. PE exit activity decreases 60% by value from 1Q21: PE will continue to do what they have always done, which is execute on strategy and look to exit when conditions are more amenable
5. Secondaries market reaches new heights: GP-led deals are key drivers of this trend, as they are providing optionality for LPs    

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