Global private equity exit activity dropped year-over-year in the second quarter as unfavorable market conditions left managers holding onto portfolio companies for longer.

The aggregate transaction value of private equity and venture capital-backed exits slipped 14.6% to $168.01 billion from $196.65 billion in the same period a year ago, according to S&P Global Market Intelligence data.

The number of exits in the second quarter declined 29.1% to 722 from 1,018 transactions during the same period last year.

"Private equity managers are more hesitant to exit positions during times of market turmoil due to concerns that they will not be able to secure the exit valuation multiple they were expecting," Cameron Joyce, deputy head of research insights at Preqin, told S&P Global Market Intelligence in an email response. "We expect holding periods to increase as managers attempt to hold out for better exit conditions."

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The technology, media and telecommunications sector recorded the most exits in the second quarter at 268, worth a total $89.69 billion. This was followed by the healthcare sector with 87 transactions at an aggregate valuation of $31.83 billion.

The U.S. and Canada accounted for most of the exits in the second quarter with 307 transactions at an aggregate valuation of $129.82 billion. Europe came in second with 301 exits totaling $21.50 billion.

Exit activity is expected to remain subdued and may deteriorate in the second half of 2022 as valuations for financial assets go through a reset, Joyce said.

The biggest exit this year to-date is the $69.25 billion ongoing sale of cloud computing company VMware Inc. An investor group including Silver Lake Management LLC agreed on May 26 to sell VMWare to Broadcom Inc.

The $11.58 billion sale of Biohaven Pharmaceutical Holding Co. Ltd. is the second biggest exit deal. Pfizer Inc. agreed on May 10 to acquire the biopharmaceutical company from an investor group including Knoll Capital Management, VR Adviser LLC, RA Capital Management LP and Osage University Partners.