The investment bank tracked 150 second-quarter transactions, down from 210 in the year-earlier period, a decline of 29%. In the same time frame, the combined deal value fell 68%, from $7.5 billion to $2.4 billion.
The number of transactions (down 17%) and combined value (down 6%) also fell from the first quarter of this year. Petsky Prunier said limited credit and reduced corporate earnings affected deal flow.
“While the deal market continues to be challenging, transactions are still being completed,” John Prunier, partner at Petsky Prunier, said in a statement. “Venture and growth investment is the relative sweet spot in the market, but with exit horizons generally longer and lower in value than they were when many funds were raised, liquidity and terms are still not as expansive as they have been or, we believe, will be again. Similarly, with credit markets remaining tight, leveraged buyouts remain largely beyond the grasp of their private equity sponsors.”