Heading west: PE sourcing more from the valley than public market Download PitchBook’s 2Q 2018 US PE Breakdown report here. We’ve remarked in the past that PE firms are warming to VC-backed targets. Younger tech companies are increasingly becoming viable buyout targets, or at least intriguing add-on candidates for their platforms. Meanwhile, we’ve also seen
New tax law to impact PE data Download PitchBook’s Report click here. Recent changes to the US corporate tax rate are a mixed bag for private equity. Reducing the top-line rate from 35% to 21% affects PE at both the fund and portfolio company levels, as both are structured as corporate entities in the first
Are small funds losing ground? Download PitchBook’s report here. Another quarter, another round of outperformance for large funds. Rolling one-year horizon IRRs have been consistent of late when broken down by fund size, and $1B+ PE funds once again bested their smaller peers in recent returns. Much of that recent outperformance might be traced back
Is PE performance persistent? Download PitchBook’s Report click here. “Past performance does not guarantee future results.” Finance professionals have probably read that boilerplate disclosure so many times they may not even notice it anymore. And while that phrase has arguably reached truism status, there is a residual belief that past performance is relevant to future
The pros and cons of long-dated funds Download PitchBook Report here Private equity moves at a glacial pace. While the average shelf life of a PE fund is often assumed to be eight to ten years, many funds require considerably more time to wind down. PitchBook data shows that it takes between 11 to 14
The upside of SBOs Secondary buyouts have been a contentious part of the PE industry for a long time. Limited partners are the most vocal about “pass-the-parcel” deals; in rare cases they are both buyer and seller of the same company (if they’re invested in both funds), but even when that’s not the case, studies
PE Firms Compete More Avidly for Value in Healthcare After steadily climbing over the past several years, the median size of healthcare private equity buyouts across North America and Europe peaked at a remarkable $136.8 million in 2017. Growth investing, meanwhile, has stayed relatively steady throughout the same period. (It should be noted that choppiness
PE’s massive consolidation in healthcare Download Report click here. Healthcare-related PE activity broke records last year. Both counts and value reached new highs in 2017, according to RSM’s Q1 Healthcare and Life Sciences Report, done in conjunction with PitchBook. In all, 692 transactions were done totaling $86.1 billion in North America....
Carving out opportunities Download PitchBook’s 1Q 2018 M&A Report click here. Somewhat quietly, PE-led carveout acquisitions have boomed in recent years. This is a natural and sometimes overlooked consequence of M&A booms, especially today’s. Corporate buying sprees have their own logic to them, and when public companies announce plans to buy or sell certain non-core
Buy-and-grow Download PitchBook’s 1Q 2018 US PE Middle Market Report click here. As technology continues to upend market after market, private equity has shifted its focus from the bottom line to the top line. The onus to create value, in other words, relies more on revenue growth today than it has in the past....