From mega-deals to IPOs, private equity activity has slowed across numerous metrics after a banner 2021, as firms further grapple with rising interest rates, inflation and geopolitical turbulence.

That's the takeaway from our latest US PE Breakdown, which explores how the private markets are maneuvering in a volatile global market. Here are five key insights from the report.
   

Hit by an uneasy global market, US PE deals slowed in H2 2022 compared to the same period last year. US PE firms completed around 4,000 deals, with a total value of over $400 billion as of June 30.

Mega-deals—defined as transactions of $1 billion or more—have slowed, as all deals have, but have remained elevated relative to historic standards, accounting for over $137 billion in deal value in the first six months of 2022. The largest share of deals by value has come in the $100 million to $500 million range, accounting for nearly $200 billion in total deal value.
   

Last year was the busiest year for take-private deals since 2016, and analysts expect these transactions to remain a focus of US private equity firms through the end of this year as firms look to home in on companies that are under pressure from market volatility.

So far this year, 18 take-private deals have closed, amassing $58.6 billion in deal value. The healthcare sector has seen notable activity in the take-private space, with four deals completed in the second quarter.

The year's most widely reported take-private is Elon Musk's $44 billion agreement to acquire Twitter, which Musk has since tried to back out of. Twitter recently filed a 62-page complaint alleging that the attempt to cancel the deal is an act of "hypocrisy" and "bad faith." The deal is now enrobed in litigation.
   

US PE exit activity has seen a large drop-off compared to last year, and no subsector of exit activity has been hit harder than public listings. PE-backed public listing exit value hit $272.1 billion in 2021, a record year for IPOs.

So far this year, there have only been $3.4 billion in PE-led IPOs. Corporate acquisition and sponsored acquisition exits have also drastically fallen this year.
   

Fundraising activity had a sluggish start to the year in Q1 following a historic 2021, which saw nearly $340 billion in total capital raised. However, US PE firms picked up the pace in Q2 and have now raised more than half of last year's total, with $176 billion committed across 191 funds.

First-time funds have seen a decline this year after 2021's lucrative run, when 88 first-time funds closed $16.3 billion. Through the first half of this year, 27 first-time funds have raised $5.2 billion in capital. There have been some high notes, including OceanSound Partners closing the third-largest first-time fund ever at $780 million.

The average time between PE funds has narrowed over the past three years. So far this year, US PE firms have seen the average fund close in 2.8 years following its predecessor, and 3.2 years on average for buyout funds.

Analysts believe that PE firms will likely need to revert to historical timelines when it comes to fund deployment. As time between funds narrows, some LPs believe cash flow could tighten and put pressure on pension and endowment institutions, according to the report.