European PE Exit Backlog Hits Decade High

European private equity sponsors are striking new deals faster than they can exit old ones, widening the gap. According to PitchBook's Q2 2026 European PE Breakdown, the continent's deals-to-exit ratio rose from 2.4x in 2025 to 2.9x in the first half of 2026, the highest level in at least a decade. Around 1,556 deals were struck in the first six months of 2026, while only 537 assets were realized. Exit values surged 29.7% quarter-over-quarter to €98.8 billion ($113.3 billion), but exit counts remained flat. Notably, 22 mega-exits accounted for 65.8% of all exit value, highlighting a top-of-market clearing event. Major exits include Advent International and Cinven's €29.4 billion sale of TK Elevator to Kone, and Advent's €17.3 billion Nasdaq IPO of Innio Group. The ECB's first rate hike since 2023 introduced new headwinds, raising questions about whether the backlog will peak at current levels.

Are European PE sponsors facing the early signs of a liquidity crisis, or is this merely a normal phase in the market cycle? Deeper analysis is needed to answer this question.