The Pulse of Private Equity – 1/7/2019

2018: Almost a record Download PitchBook’s Report here. Thanks to a massive Q4 to close out the year, 2018 came close to setting a new record for combined deal value. About $277 billion was invested in Q4, versus a relatively paltry $198 billion invested in Q3 2018. Fourth quarters typically see the highest numbers in any

The Pulse of Private Equity – 12/17/2018

What do LPs want? Download PitchBook’s Report here. Do they know you, and how much do you cost? Those are the two most important factors for LPs considering GP commitments, according to our new Institutional Investors Survey. We reached out to more than 50 global LPs for the study, which came back with some surprising results.

The Pulse of Private Equity – 12/10/2018

Why are SBOs more expensive? Download PitchBook’s Report here. Secondary buyouts have transacted at a premium versus non-SBOs since the financial crisis. That’s somewhat surprising; one might assume that “used” portfolio companies would trade at a discount given the operational improvements that have already been made, leaving less low-hanging fruit for the next sponsor. Not so

The Pulse of Private Equity – 12/3/2018

Leon Black sounds the alarm Apollo’s Leon Black made a few waves this week, warning that “the credit markets, unlike the equity markets, have gone to bubble status.” He said the amount of covenant-less debt available today is higher than it was in the run-up to the financial crisis. Bloomberg’s Lisa Abramowicz was right to

The Pulse of Private Equity – 11/26/2018

PE carveouts on the rise Download PitchBook’s Report here. Activists, shareholders and corporate boards are all increasingly vocal about focusing on core investments, which often translates into selling off non-core assets. Not every PEG is experienced in carveouts, which are riskier and more challenging than standard buyouts. But for investors who have done them in the

The Pulse of Private Equity – 11/19/2018

Is the middle market at an inflection point? Download PitchBook’s Report here. Much has been said on the consistent strength of the US middle market—much of it by us. Commenting as a data provider, we’ve found it tricky to creatively analyze the middle market without repeating ourselves. That said, there are a few unique ways to

The Pulse of Private Equity – 11/12/2018

Why the secondaries surge? Download PitchBook’s Report here. Secondaries fundraising continues apace, gathering another $26.3 billion through early Q4. That puts 2018 slightly behind last year’s record, but this year will still mark a third consecutive year with strong numbers. As a strategy, secondaries have garnered attention recently—buy-side LPs are pushing for PE exposure at the

The Pulse of Private Equity – 11/5/2018

The chart that never goes down Download PitchBook’s Report here. Between 2004 and 2008—considered by many to be the boom days of private equity—PE’s combined company inventory climbed 74% in the United States. Over the span of five years, in other words, the number of companies under PE control came fairly close to doubling. That was

The Pulse of Private Equity – 10/29/2018

Can today’s multiples withstand a downturn? Download PitchBook’s Report here. Middle-market purchase price multiples have nearly doubled since 2009. To be sure, most metrics and indicators have bounced back substantially from the crisis, and private equity is no exception. PE valuations have risen moderately from year to year, sometimes in fits and starts, and now stand

The Pulse of Private Equity – 10/22/2018

Barreling toward a record Download PitchBook’s Report here. US middle market PE activity is set to break records this year. Through Q3, more than 2,000 transactions have closed totaling $289 billion in investments. At that pace, 2018 is looking at more than 2,700 deals at more than $385 billion invested....