PitchBook

GlobalMarkets

Snapshot

JUNE2023

PitchBook

PrivateEquityActivityLags

Junewasabusymonthforglobalcentralbanksasthe

fightagainstinflationcontinues.Ratehikeswereissued

bytheBankofEngland+50bps(basispoints)andthe

EuropeanCentralBank+25bps.TheBankofJapan,despite

itsrecentchangeinleadershipinApril,maintainedits

policyrateat-0.1%,andtheFederalReserveBankofthe

UnitedStateslikewisekeptthefederalfundsratesteady

itsprimaryinterestrate10bpsinsupportofdomestic

growthandinreactiontoweakerdownstreamdemand

intherangeof5%-5.25%.ThePeople'sBankofChinacut

foritsmanufacturedgoods.

Ascentralbankrateactivityevolvesaroundprevailing

inflationrateenvironments,GPsinPEhavedrastically

slowedcapitaldeploymentinsearchof2021dealsat

2023prices.AmongthelargestpubliclylistedUS

alternativesmanagers,mediandeploymenttoPEona

dollar-valuebasisfellmorethan71%forQ12023fromayearearlier.TotheexclusionofApolloandAres,

Blackstone,KKR,Carlyle,andTPGallsawprecipitous

drop-offsintheirdeployedcapitalintoPE.WhileApolloespeciallyhasbeenquicktostrikeondealsin2023as

valuationsfalter,firmssuchasKKRandTPGareholdingontorecorddrypowderbalances,preferringtoholdoffuntilvaluationscomedownmoremeaningfully.ZoomingouttoPEmorebroadly,totalquarterlyPEdealactivityintheUnitedStatesinQ12023slowedtoatwo-and-a-half-yearlow,notchingonly$82.6billion.

Onadealvaluebasis,2023hasbeentheweakestyear

inmorethan15yearsforUSbuyoutactivity,comprising

only40.8%ofoverallUSPEdealcounts;incontrast,

Q12023of48.2%.Thesetrendsindealactivityalso

correspondwithadropinthemedianPEdealdollar

add-onactivityreacheda15-yearproportionalpeakin

valueandcanbereasonablyunderstoodasmanagers

lookingforsmallerdealsasfinancingremainscostly.As

valuationscontinuetoresetfromrecenthighs,andas

thebiggestPEplayersreinitiateallocationstotheasset

class,expectbuyoutstorecoversomegroundin

proportionalactivity.FormoreinsightintohowcentralbanksandothermacroeconomicfactorsareshapingthePElandscapeof2023,pleaserefertoourQ12023USPEBreakdown,Q12023EuropeanPEBreakdown,andthe

Q12023USPublicPEandGPDealRoundup.

InstitutionalResearchGroup

Analysis

ParkerDean

parker.dean@

AssociateQuantitativeResearchAnalyst

pbinstitutionalresearch@

ShareofUSPEdealvaluebydealtype

Buyout/LBOAdd-onPE

Note:AlldatainthisreportisasofJume30,2023,unlessnotedotherwise.

growth/expansion

*AsofMarch31,2023

Source:PitchBook|Geography:Global

2GLOBALMARKETSSNAPSHOT

EuroareaAAAyieldcurve

PitchBook

Overview

Selectmajorindexestotalreturn

S&P500

YTD:+16.9%|1-yr:+19.6%|3-yr:+12.8%

NasdaqComposite

YTD:+32.3%|1-yr:+26.1%|3-yr:+15.5%

MorningstarGlobal

YTD:+13.5%|1-yr:+16.7%|3-yr:+8.8%

FTSE100

YTD:+3.2%|1-yr:+9.1%|3-yr:+4.1%

Nikkei225

YTD:+28.6%|1-yr:+28.6%|3-yr:+14.0%

Note:Three-yearreturnsareannualized.

S&P500NasdaqCompositeMorningstarGlobalFTSE100-Nikkei225

Source;Morningstar

Monthlyglobalmega-fundcapitalralsed($B)bytyp

■PE■VC■RealestateRealassetsmDebt

Source:PitchBook

Note:Mega-fundsincludeVCfundsof$500M+ordebt,PE,realassets,orrealestatefundsof$5B+.

Source:FREDSource:EuropeanCentralBank

One-yearchangeselectcommodities

Source:Morningstar

10-yeargovernmentbondyields

Sources:FRED,TullettPrebon

3GLOBALMARKETSSNAPSHOT

PitchBook

Equitymarkets

2023selectpublicindexestotalreturn

YTD

■Global

■US

■Europe

Asia

■Restofworld

●June

+323%

+28.6%

+20.1%

+201%

+193%

+19.9%

+14.6%

+6.1%

+13.5%

+13.4%

+5.8%

+11.9%

+3.9%

+8.1%

+8.1%

+6.3%

+3.5%

+5.4%

+3.8%

+4.9%

54.7%

+3.2%

+1.4%

+2.7%

+1.0%

+4.1%

%01+

+4.0%

1.3%

VC-backedunicornscreatedmonthlybyHQregion

USIPO

250%

200%

150%

100%

50%

0%

-50%

-100%

Jun

■North

America

■Europe

Asia

Restofworld

Source:Morningstar

andDeSPACindexesversusNasdaqthree-yearreturn

+42.9%

-10.7%

-33.2%

-58.0%

2020Dec2020Jun2021Dec2021Jun2022Dec2022Jun2023

—VC-BackedIPOIndex

—DeSPACIndex

-PE-BackedIPOIndex

-NasdaqComposite

Source:PitchBookSources:Morningstar,PitchBook

LargestPE-andVC-backedpubliclistingsinJune

Company

Date

Backing

Valuation($B)

Exchange:Ticker

Industry

HQCountry

Savers

June29

PE

$2.9

NYS:SVV

B2C

US

Cava

June16

VC

$2.5

NYS:CAVA

B2C

US

GenrixBiopharmaceutical

June20

VC

$2.0

SHG:688443

Pharma&biotech

China

Hicon

June20

VC

$1.8

SHE:301262

Media

China

Yaoshibang

June28

VC

$1.8

HKG:09885

Software

China

MingyangElectric

June30

VC

$1.7

SHE:301291

Energy

China

FidelisInsurance

June29

PE

$1.7

NYS:FIHL

Financialservices

Bermuda

AnhuiXdlkMicrosystem

June30

PE

$1.5

SHG:688582

IThardware

China

ZhengzhouNetworkTechnology

June21

VC

$1.4

SHE:301376

B2C

China

HunanAerospaceCommunication

June2

PE

$1.3

SHG:688523

B2B

China

Source:PitchBook

4GLOBALMARKETSSNAPSHOT

PitchBook

Equitymarkets

2023MorningstarUSsectorindexestotalreturn

Source:Morningstar

—MorningstarUSLargeCap

—MorningstarUSSmallCap

——MorningstarGlobalex-US

Source:MorningstarSource:Morningstar

NotablePEandVCdealsinJune

Company

Date

Dealsize($B)

Valuation($B)

DealType

Industry

HQCountry

AnthesisConsultingGroup

June30

N/A

$505.1

Buyout/LBO

B2B

UK

WatertecIndia

June27

$27.0

$40.3

Buyout/LB0

B2B

India

AuthenticBrandsGroup

June29

$0.5

$20.0

PEGrowth/Expansion

B2B

US

N.IndianaPublicServiceCompany

June20

$2.2

$10.8

PEGrowth/Expansion

Energy

US

DechraPharmaceuticals

June2

$5.6

$5.6

Buyout/LBO

Pharma&biotech

UK

CompassDatacenters

June20

$5.5

$5.5

Buyout/LBO

B2B

US

SUNWODAEVB

June21

$0.2

$5.0

SeriesB

B2B

China

Aledade

June21

$0.3

$3.5

SeriesF

HCservices&systems

US

DukeEnergy

June13

$2.8

$2.8

Buyout/LBO

Energy

US

NetworkInternational

June9

$2.7

$2.7

Buyout/LBO

Financialservices

UnitedArabEmirates

Source:PitchBook

5GLOBALMARKETSSNAPSHOT

PitchBook

Debtmarkets

USleveragedloanvalue($B)andselectedyieldsEuropeanleveragedloanvalue(EB)andTLByield

Source:PitchBook|LCDNote:TLBstandsforTermLoanB.Source:PitchBook|LCD

USmiddle-marketloanvalue($B)andaveragenewissueyield"UShigh-yieldbondvalue($B)andselectedyields

InstitutionalProrata——Avg.newissueyield($50MorlessEBITDA)

SecuredUnsecuredSecuredyieldUnsecuredyield

*Asof4/30/2023

Source:PitchBook|LCD

Source:PitchBook|LCD

Morningstar/LSTALeveragedLoanIndexdistressedratio

35%

8.5%

6.0%

Note:"Distressed"loansarepricedbelow80topar.

-Byparamount

Byissuercount

Source:PitchBook|LCD

6GLOBALMARKETSSNAPSHOT

Source:FRED

10-yeargovernmentbondyieldsbycountry

Sources:FRED,TullettPrebon

PitchBook

Debtmarkets

SelectMorningstarbondindexestotalreturn

Source:Morningstar

US10-yearTIPS-impliedinflationandrealyield

5%

NominalUS10-yearyield—US10-yearTIPSImpliedrealyield

Morningstar/LSTALeveragedLoanIndexmonthlyreturn

Jun2022Aug20220ct2022Dec2022Feb2023Apr2023Jun2023

Source:PitchBook|LCD

USHYOASEuropeanHYOAS

Source:FRED

Selectcentralbankpolicyrates

Source;BankofInternationalSettlements

7GLOBALMARKETSSNAPSHOT

PitchBook

RealEstate

Source:Morningstar

Source:HUD

*AsofMay31,2023

Source:FRED

*AsofMay31,2023

Source:NAHB

■May2022November2022May2023

Source:Trepp

*AsofMay31,2023

*AsofMay31,2023

8GLOBALMARKETSSNAPSHOT

PitchBook

Selectindexestotalreturn

IndexJun3monthsYTD1year2years3years4years5years10years20years30years

DowJonesIndustrials

NasdaqComposite

S&P500

S&P500Growth

S&P500Value

4.68%3.97%4.94%

14.23%

1.92%-1.72%3.39%

-0.58%

12.31%11.95%

14.61%

8.95%9.59%11.26%9.58%10.41%

6.65%6.61%6.38%

6.88%

13.05%

8.74%

10.59%

6.64%

32.32%16.89%

21.25%

26.14%

15.52%

12.78%

13.93%

12.31%

16.21%

0.13

19.59%

18.25%

10.04%10.04%

11.81%

13.26%13.01%14.49%

10.77%

8.92%

12.15%

19.99%

6.85%

16.80%

11.06%10.58%10.51%

Nasdaq100

Russell2000

EuroSTOXX50

STOXXEurope600

FTSE100

FTSE250

FTSE350

Nikkei225

FTSEChinaA50

HongKongHSI

6.55%8.13%4.63%2.25%1.40%-1.26%

1.02%

15.39%

39.35%

33.13%

2.96%

15.25%

19.61%17.66%19.23%

14.51%

5.21%

4.46%

8.09%

12.31%

-8.35%

10.83%

6.18%4.21%

8.26%

8.89%8.67%

20.12%

34.68%

9.30%

15.72%

10.81%10.36%9.82%

7.27%

0.89%-0.31%-1.56%

-0.48%

8.72%

13.44%

1.00%

8.64%

4.67%

4.10%

3.99%

3.58%

4.95%

4.20%4.79%

3.24%

9.15%

7.45%

10.86%

5.89%

7.07%6.99%

-0.60%

2.69%

1.87%

-6.73%

5.10%

1.11%0.10%

5.65%

9.69%9.07%

8.07%

5.07%

10.00%

3.68%3.07%

5.87%

7.42%7.22%

7.61%

18.54%

28.65%28.60%

9.65%

16.43%

13.99%10.47%

11.37%

0.28%

3.74%

-9.68%

-7.27%

-6.70%

-20.84%

-18.20%

-19.01%

-2.10%

-0.96%2.30%

7.24%

-4.37%

-13.46%

-8.17%

-9.77%-8.16%

-0.95%

3.46%3.32%

MorningstarUS

MorningstarUSGrowth

MorningstarUSValue

MorningstarUSLargeCap

MorningstarUSLargeCapGrowth

MorningstarUSLargeCapValue

MorningstarUSMidCap

MorningstarUSMidCapGrowth

MorningstarUSMidCapValue

MorningstarUSSmallCap

MorningstarUSSmallCapGrowth

MorningstarUSSmallCapValue

MorningstarUSLarge-MidCap

MorningstarUSLarge-MidCapGrowth

MorningstarUSLarge-MidCapValue

MorningstarUSSmall-MidCap

MorningstarUSSmall-MidCapGrowthMorningstarUSSmall-MidCapValue

6.83%7.42%6.42%6.27%7.12%5.65%8.28%7.12%8.44%9.04%7.74%

9.95%

8.49%

16.52%

19.25%

1.39%

13.80%

12.04%11.53%12.42%

10.20%9.97%

11.64%

28.15%

23.41%

-6.02%

8.42%

12.40%12.19%

14.42%

10.61%

3.86%4.05%

11.45%

4.61%

2.69%

15.78%

13.96%

8.54%8.26%

9.47%

8.62%

9.76%

19.26%20.95%

13.16%12.69%

13.11%

10.03%9.75%

8.08%

9.85%

12.80%

32.61%

30.33%

-8.44%

6.00%

10.07%10.34%

13.97%

4.06%4.81%

12.58%

14.20%

5.67%

-1.35%

14.64%

13.15%

8.82%

9.42%

9.05%

9.25%

9.54%

4.66%

8.51%

11.07%

11.70%

10.77%10.81%10.00%9.58%9.16%

9.47%

10.20%

6.48%

16.81%

19.57%

-8.94%

5.91%

8.65%10.02%

2.50%1.19%

7.84%

2.16%

17.01%

7.41%

6.86%

6.28%

5.14%

9.52%8.57%8.65%

7.70%

5.60%

10.77%

15.19%

-5.00%

12.51%

9.39%

7.34%

18.29%

17.36%

-13.50%

2.41%

3.97%3.87%

4.01%2.56%

7.88%

-0.69%

1.84%

20.17%

7.93%4.72%

6.68%7.43%6.18%8.47%7.27%

8.83%

8.70%11.26%

16.93%

19.54%

13.85%

12.38%11.97%

13.09%13.08%

12.65%14.85%

10.21%0.65%

8.42%

10.02%

28.33%

24.53%

-5.25%

8.96%

3.84%

4.90%

6.70%

4.15%

11.68%

4.96%

-2.24%

15.31%

13.02%

8.48%

8.81%

7.53%

7.61%

8.44%8.23%8.52%

5.95%

9.40%10.33%10.86%

8.93%

9.08%

14.46%

10.40%10.37%

9.80%

9.97%

17.19%19.04%

-10.03%

5.08%

2.89%1.54%

7.88%

1.50%

17.90%

MorningstarGlobalMktsSustainability

MorningstarGlobalCorpBondSustain.

5.53%5.64%

14.28%

18.32%

-0.03%

11.40%

9.55%9.17%9.40%

0.88%-0.01%

3.49%1.72%

-8.18%

-3.96%

-1.48%0.33%

Morningstar-PitchBookListedPE

5.86%6.70%

13.95%15.75%

-6.69%

13.41%

12.12%11.25%12.33%

MorningstarMorningstarMorningstarMorningstarMorningstarMorningstarMorningstar

Morningstar

MorningstarMorningstarMorningstar

USCommunicationServices

USConsumerDefensive

USConsumerCyclical

USEnergy

USFinancialServices

USHealthcare

USIndustrials

USBasicMaterials

USRealEstate

USTechnology

USUtilities

2.87%

3.34%

12.59%

34.92%

16.18%

-11.91%

5.06%

6.78%9.71%9.19%

9.21%9.94%

11.55%

0.56%

2.08%

6.82%

4.71%

-3.43%

11.77%

13.36%

10.20%

12.87%

11.04%

11.98%

9.95%

13.61%

10.65%

10.00%

11.49%12.14%

30.24%

25.66%

7.22%6.94%

4.29%

-0.48%

-5.44%

18.00%

27.69%

35.25%

11.87%

5.68%

3.73%

8.74%

5.15%

2.99%

1.46%-0.87%

10.65%

-3.84%

12.97%

6.99%7.42%

10.58%

5.68%

8.43%

5.40%

1.16%

9.75%

10.46%10.53%12.63%

10.74%10.67%

9.67%

12.54%11.94%10.26%

10.16%

10.54%

11.86%

10.26%

11.90%11.34%

7.40%

3.63%

11.91%

26.19%

3.83%3.77%

17.73%17.86%

8.92%

18.53%

9.63%8.05%

5.75%6.73%

2.30%

3.56%-3.27%

-5.58%

5.81%

2.34%4.06%6.16%

8.10%9.08%

16.48%

42.70%39.20%

7.56%

4.80%

18.95%

22.95%20.62%20.81%

14.26%13.21%

1.45%

-2.75%

-5.70%-3.36%

8.32%

5.12%7.68%9.12%9.45%8.08%

Note:Returnsmorethanoneyearareannualized.

Source:Morningstar

9GLOBALMARKETSSNAPSHOT

PitchBook

Selectindexestotalreturn

IndexJun3monthsYTD1year2years3years4years5years

10years

6.70%

3.79%

6.16%

20years

8.68%

7.42%

30years

MorningstarUSREIT

MorningstarGlobalRealEstate

MorningstarUSRealEstate

MorningstarDevEuropeRealEstate

MorningstarEmergingMktsRealEstate

5.27%4.08%5.75%1.26%

5.08%

1.16%0.73%2.30%-1.77%

-1.81%

3.14%0.98%3.56%-1.40%

-3.46%

-4.32%-5.07%

5.91%2.80%4.89%

-5.14%

-3.27%

-9.75%

-5.58%

1.96%

5.81%

-1.27%

2.34%

0.56%

4.06%

8.10%9.08%

-10.95%

-12.42%

-22.12%

-19.37%

-6.87%-6.80%

-9.78%-11.15%

-6.26%

-7.86%

1.57%

-2.41%

4.96%

3.77%

MorningstarMorningstarMorningstarMorningstarMorningstar

Morningstar

GlobalTreasury

Globalex-USTreasury

USHY

GlobalHY

EurozoneHY

EMHY

-0.35%-0.13%1.62%1.92%2.83%

2.68%

-2.55%-3.20%1.65%

1.81%

2.1%

1.44%

0.32%-0.37%5.39%5.83%6.82%

2.90%

-3.37%-3.95%8.93%10.05%14.14%

9.71%

-10.78%

-13.40%

-7.20%

-8.55%

-4.55%

-6.32%

-2.64%

-4.24%

-0.76%

-1.61%

1.98%

1.58%

-2.43%-3.68%-7.26%

-8.78%

3.19%2.50%0.38%

-2.06%

2.31%1.64%-0.65%

-2.26%

3.35%

2.62%

0.08%

0.45%

4.40%

3.79%

1.64%

2.60%

6.49%

6.33%

5.76%

6.40%

S&PGSCI

MorningstarRealAssets

AlerianMLPETF

BBgCommodity

BBgCommodityexPreciousMetals

S&PGSCIGoldSpot

OilPriceBrentCrude

S&PGSCIAgriculture

4.39%2.77%4.67%4.04%5.87%-2.66%3.08%

-5.27%

-2.73%-0.06%3.95%-2.56%-2.38%-2.86%-6.11%

-12.64%

-7.54%2.11%7.47%

-7.79%

-10.25%

-14.22%

11.56%

25.12%

6.66%

4.13%

3.46%

2.76%

3.60%

3.65%

4.73%

3.86%

-3.52%3.00%-0.05%-0.99%

-1.97%

-1.08%

5.77%

0.68%

-0.47%

1.10%

2.77%

1.94%-0.18%

6.48%

23.06%

12.49%

27.47%

-9.61%

-13.37%

5.99%

6.59%

17.83%

21.21%

7.82%

7.40%

5.65%

6.76%

4.36%

2.33%

8.09%8.99%

4.66%-3.10%

0.44%

8.97%

5.01%

4.15%

5.57%

4.97%

2.58%

-12.82%

-14.57%

-34.76%

-0.15%

-1.76%

22.11%

3.00%-1.17%

-15.29%

14.53%

7.75%7.07%

MorningstarDevelopedMktsMinVol

MorningstarUSMinVol

3.48%

5.24%

2.03%

3.51%

4.69%

5.27%

8.27%

8.87%

-0.58%

0.26%

6.34%

8.57%

3.97%

6.18%

5.52%

8.06%

7.97%

10.20%

MorningstarGlobal

MorningstarGlobalex-US

MorningstarGlobalex-USGrowth

MorningstarGlobalex-USValue

MorningstarGlobalAllCap

MorningstarGlobalLargeCap

MorningstarGlobalSmallCap

MorningstarDevelopedMarkets

MorningstarDevelopedMarketsex-US

MorningstarEurope

MorningstarAsiaPacific

MorningstarAsiaPacificex-Japan

MorningstarEM

MorningstarEMAsia

MorningstarEMEurope

MorningstarEMAmericas

5.83%

4.40%

3.88%

5.29%

5.85%

5.55%

6.13%

6.09%

4.62%

4.70%

3.45%

3.20%

3.84%

2.92%

1.45%

6.09%

2.74%2.22%3.67%

6.08%

6.84%3.49%

6.67%

3.13%2.97%

1.93%

-0.01%1.77%0.43%

2.50%

13.49%

9.32%

10.25%

9.37%

13.44%

15.23%

8.30%

14.61%

10.89%

13.39%

16.73%13.19%13.15%14.29%16.66%17.97%12.61%18.55%17.08%

21.68%

-1.03%-4.31%

-7.74%

11.28%

7.92%

4.21%

12.11%

11.34%

11.36%

9.47%

8.82%

4.78%

4.59%

4.89%

8.16%4.08%

4.33%

4.15%

9.15%5.73%5.61%

5.03%

8.95%

7.22%

0.28%-1.12%-0.02%

-6.87%

8.82%

9.47%

8.15%

8.96%

9.12%

9.45%

8.69%

5.85%4.35%

7.59%

0.37%-1.61%

-1.52%

12.24%9.35%

10.11%

9.71%8.94%9.88%

9.12%

7.46%

7.51%

7.47%

9.30%

9.18%

9.41%

5.72%

5.77%

3.69%

3.09%

2.50%

3.59%

4.73%5.03%2.75%2.87%2.59%

2.78%

5.98%

6.08%

5.28%

5.10%

4.02%

5.39%

6.33%3.47%5.41%

4.87%

7.50%2.58%4.00%

1.56%

-7.92%

-10.43%

-10.70%

-12.26%

4.57%

4.23%

4.46%

3.21%

-0.14%

51.42%

-40.31%

-21.43%-19.97%

-13.87%

-6.79%

.24%

12.07%15.64%

20.09%

30.98%

3.63%

16.06%

1.73%

5.16%

1.31%

10.23%

MorningstarMorningstarMorningstarMorningstarMorningstarMorningstarMorningstarMorningstarMorningstar

Morningstar

US

UK

China

Germany

France

Canada

Japan

Australia

Brazil

India

6.83%8.49%

16.52%

19.25%

1.39%0.86%

-23.41%

-5.45%4.12%-0.29%-3.00%-2.42%

-1.24%

13.80%10.98%-9.26%5.96%15.27%

13.55%

12.04%11.53%12.42%

10.20%9.97%

3.58%

3.99%

2.28%-9.13%

8.23%

-4.96%

12.63%

-15.53%

3.25%-3.83%

4.10%

2.06%-3.54