PE Pulse: 5 takeaways from 1Q 2021

NextWave Private Equity

Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from Q1 2021 that are top of mind for PE investors.

The PE Pulse is a quarterly report and corresponding podcast miniseries that provides analysis and insights on private equity market activity and trends. Visit https://www.ey.com/pepulse to view the summary and infographic.

5 takeaways from 1Q 2021:

1. The first quarter of 2021 was a blockbuster quarter for PE deals, and in fact was the highest of any quarter in the past decade.
2. Technology gained maximum traction during the COVID-19 pandemic and remains a powerful thesis.
3. The SPAC market expanded at an unprecedented rate during the COVID-19 pandemic.
4. Holding periods could increase as a result of the pandemic, although IPO exits rebounded strongly in 1Q.
5. Finding the right target at the right price remains a challenge in an uncertain market.