Private Equity Info — Blog

Private Equity Holding Periods Continue to Climb

Private‑equity firms now hold portfolio companies for a median of six years, the longest span since the metric began tracking in 2000. The increase reflects delayed exits caused by market uncertainty, the COVID‑19 pandemic, and a strategic shift toward add‑on acquisitions rather than full disposals. Roughly half of the current holdings were made before the pandemic, and deals from the 2021‑2022 boom were priced at elevated multiples, further extending the exit timeline. Analysts anticipate a modest acceleration in exits over the next 12‑18 months as financing conditions stabilize.