Holding time for Private Equity firms declines.

PE firms are holding investments for an average of 4.9 years according to a recent report from PitchBook--down to its lowest level since 2011. The change is most prevalent at the top top-quartile of investments. 

What exactly is leading this change? The report highlights that it is a combination of increased M&A activity--which in turn creates additional opportunities for PE firms to exit--and the expansion of formalized committees. While investment committees are by no means a new practice among firms, they have thus far been relegated to initial investment and due diligence decisions. The expansion of investment committees to exit transactions is no doubt bringing a level of objectivity, streamlined process, and accountability that should ultimately be a benefit.