Giannini: PE Deal Volume Slowed but Top Asset Multiples Remain High
Mario Giannini · Mario Giannini & John Toomey – Private Equity Panel (Capital Allocators EP.309) · Apr 17, 2023 · at 18:34
Mario Giannini (Hamilton Lane) discusses why private equity transaction multiples have not significantly dropped in early 2023 despite macro repricing.
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“What's happening now is the deal activity has slowed. There's no question, especially compared to what it was in the heyday of 21, 20. What you're seeing in this market today is on the equity side, The deals being done are really good companies. Great companies that the seller has enough of a profit or companies selling it, whoever's doing it, that they're comfortable at that price. And the buyer, the general partner is comfortable because they believe that it will go through any kind of period and be okay. So multiples are not coming down on that a little bit, but not very much. You're not seeing a bunch of transactions at value prices.”
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