The Pulse of Private Equity - 4/23/2018

Construction Delays Download PitchBook’s report click here. Last week we highlighted our recent buy-and-build research, which found, among other things, that PE hold periods are significantly impacted by add-on deals. On average, platforms with add-on acquisitions take about one year longer to exit versus bare-bones platforms. That, in turn, has helped pushed out PE holding

The Pulse of Private Equity - 4/16/2018

Buy, build, repeat Download PitchBook’s report click here. The buy-and-build strategy has largely displaced private equity’s early playbook, which relied on financial engineering and ambitious leveraging to generate profits. To be sure, add-ons have been in PE’s playbook even before the crisis, though to a much smaller degree....

The Pulse of Private Equity - 4/9/2018

A closer look at private debt performance Download PitchBook’s report click here. As traditional PE strategies have become more crowded, the PE industry has seen a record-high expansion in private debt fundraising. Names like Thoma Bravo, BC Partners and Silver Lake have all branched out into the private debt space, following in the footsteps of

The Pulse of Private Equity - 4/2/2018

PE performance update Download PitchBook’s Report click here. The run-up in public market valuations and its impact on PE has been discussed ad nauseum. Much of that impact has been negative, especially around multiples and a lack of suitable entry prices. PE’s strong suit has historically been the turnaround play—buy low, get your hands dirty,

The Pulse of Private Equity - 3/26/2018

Looking ahead: PE’s near-term outlook Download Related Report click here. Private equity has enjoyed a historically long business cycle alongside historically low interest rates. With high multiples and lots of dry powder floating around, today’s market bears some resemblance to 2005-2007, but not too much. The latest crop of funds (2016 vintages and later) will

The Pulse of Private Equity - 3/19/2018

Is Corporate VC hurting PE? PE investors are no strangers to competition. Fellow PEGs and strategic buyers have been around since the beginning, and family offices and fundless sponsors are fast becoming significant players in the middle market. A new hybrid competitor is starting to flex its muscle, almost undetected by the broader industry: corporate

The Pulse of Private Equity - 3/12/2018

Dance with the one who brought you Download PitchBook’s Report click here. Limited partners have found plenty to complain about over the years. They aren’t high maintenance per se, but they do fuel the private equity industry, take an opportunity risk in doing so and often feel short-changed by GPs hungry for more management fee

The Pulse of Private Equity - 3/5/2018

Four years’ worth of powder Download PitchBook’s Report click here. Much has been said about PE dry powder levels, which continue to peak year after year. Our calculations show about $848 billion of unspent buyout/growth capital across North America and Europe (as of June 30, by the way). That’s still a 22% increase over year-end

The Pulse of Private Equity - 2/26/2018

A closer look at multiples Download PitchBook’s 2017 Annual US PE Middle Market Report click here. The debt markets have been white hot recently, providing a tailwind for private equity and helping prop up valuations across the middle market. While cheap money has been a plus overall, investors have had to cap their debt commitments

The Pulse of Private Equity - 2/19/2018

Venturing into new territory Download PitchBook’s Report click here. It would have been hard to predict ten years ago, but private equity is becoming a prominent buyer of venture-backed startups. According to our 2017 Annual VC Liquidity Report, buyouts now account for almost a fifth (18.5%) of all VC-backed exits, up from about 14% in