PE deal value continued to decline in Q2 2023. Declines this quarter were the most stark compared with last year given the peak levels of activity seen in Q2 2022. We would expect declines to continue through 2023, although the extent of the decrease should improve as we move past peak levels from 2022. Furthermore, PE deal value declines have been less stark sequentially, where deal value QoQ also declined to less of an extent, showing perhaps some resilience. We expect overall activity for 2023 to remain depressed given tougher macroeconomic conditions and higher financing costs seen so far. However, as an asset class, we may see more resilience in PE deal activity as industry players weigh in on depressed asset valuations. As take-privates become less prevalent, add-ons continue to take a greater share of deal value from megadeals. Smaller transactions (more common in add-ons), which require minimal leverage, have proven popular.