The number of private equity exits fell sharply in the first quarter of 2019 compared to the same period in 2018.
Just 39 exits were achieved in the period compared to 86 in the first quarter of 2018, a fall of 55%, according to drxDATA, the Drax proprietary data platform.
The total number of exits for the year to end of March 2019 was 263 compared to 354 for the previous 12 month period, a fall of 26%.
There was a particularly significant fall off in the number of trade sales, with just 16 taking place in the first quarter of 2019 compared to 44 in the same period the previous year, a fall of 64%.
There was also a sharp fall in the number of secondary buyouts taking place, with 22 in Q1 of 2019 compared to 40 in Q1 of 2018, a fall of 45%.
Commenting on the figures, Samuel Robberts, Head of drxDATA at Drax, said: “The volume of private equity exits has completely fallen away over the last three quarters, a decline which we think is almost entirely due to the continuing uncertainty surrounding Brexit and its eventual outcome. In our opinion both potential buyers and sellers are holding off making big decisions until the way forward for the economic climate looks more certain."
He added: "The big question now is whether exit volumes will improve through Q2 now that the Brexit deadline has been postponed. Initial indications from our data suggest that volumes are already markedly up from the lows of March 2019, but only time will tell.”
drxDATA is a proprietary data analytics platform owned by Drax which can be used to develop unique data sets which provide insights and analysis for clients.