Global private equity, venture capital deal value falls 63% in July
Global private equity and venture capital entries in July slipped to the lowest monthly totals of the year, slowed by soaring inflation and rising interest rates.
Deal value worldwide was down 63% in July to $43.05 billion from $116.47 billion during the same month a year ago, according to S&P Global Market Intelligence data.
The month saw a total of 1,579 transactions, a 29.2% decline from the 2,231 deals booked in July 2021.
The total transaction value year-to-date was $519.12 billion, down 25.7% year over year. The number of deals announced in 2022 also fell behind the pace set in the previous year, with 14,411 entries recorded between Jan. 1 and July 31, compared to 14,946 transactions in the same period in 2021.
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Asia-Pacific accounted for most of the deals in July, leading with 554 deals worth a combined $17.28 billion. The U.S. and Canada came in next with 516 deals totaling $12.34 billion. Firms in Europe tallied 432 deals with a total value of $7.14 billion.
The consumer sector saw the greatest year-over-year decline in terms of private equity investment, with companies accruing $1.78 billion in total deal value, a 93.6% decrease from July 2021.
The technology, media and telecommunications industry attracted the most capital from private equity and venture capital firms during the month, pulling in $18.71 billion in total transaction value, but that figure was down more than 47% from the $35.69 billion recorded in July 2021.
Companies in the healthcare sector garnered $11.67 billion in July, down 33.5% from the same month a year ago. Financial companies collected $3.79 billion, compared to $9.6 billion worth of deals announced in July 2021.
The $8.17 billion proposed acquisition of China-based IT components manufacturer Tsinghua Unigroup Co. Ltd. by Beijing Zhiguangxin Holding Co. Ltd., which was formed by Beijing Wise Road Asset Management Co. Ltd. and Beijing JianGuang Asset Management Co. Ltd., was the largest private equity buyout deal in July.
On the venture capital front, the largest transaction of the month was Swedish financial technology startup Klarna Bank AB (publ)’s $800 million funding round. Investors included Silver Lake Management LLC, Sequoia Capital Operations LLC and Mubadala Investment Co. PJSC.
Next was the $600 million series F funding round of French software company Content Square SAS. Sixth Street Growth led the round, alongside investors including Canaan Management Inc., Bpifrance Investissement SAS, Eurazeo SE and KKR & Co. Inc.