Tea leaves for multiples News this week about the yield inversion will probably have an effect on investor psyche. Inversions have historically predated recessions by as many as 24 months—that particular lag (2005-07) also included a significant rise in the S&P. In four of the last five years, the lag between inversion and the start…

PE firms boosting retail’s omnichannel strategies PE’s track record in retail has come under some hefty scrutiny of late. And buyout shops are taking the hint. At just over 40 deals closed through H1, PE firms are set to complete the fewest retail transactions since at least 2013. Although the headlines are hard to ignore,…

PE accounts for almost 40% of M&A Coming soon Download PitchBook’s Report here. PE-led acquisitions accounted for almost 40% of M&A volume in H1. That’s a remarkably high share for the asset class, which has historically led less than 30% of all acquisitions. The percentage has been creeping up over the past few years, according to…

Private markets grow in size, importance Private market strategies are growing and will continue to grow for the foreseeable future. PitchBook heard from 101 institutional limited partners as part of a new survey report (Private Markets: A Decade of Growth) to see where LPs are allocating their money in the near-term. Two-thirds said they’d be…

12x the rest of the year? Download PitchBook’s Report here. Two quarters into 2019 and buyout multiples remain above 12x on a median basis, according to PitchBook’s recently released PE Breakdown Report. Quarterly readings from 2015 to early 2016 were in the 9.5x to 10.5x range, with multiples gradually building over time. Though high, investors have…

Exits are way down Private equity’s mid-year report card includes many of the same headwinds and tailwinds we’ve discussed in the past. One big one stands out. According to our US PE Breakdown Report, to be released this Friday, PE-backed exits had a very slow first half. Timing often plays a role—the rush to get…

Mega-funds aren’t what they used to be Download PitchBook’s Report here. It seems remarkable now, but in 2006, PE mega-funds (of over $5B) had almost ten years of cash on hand to invest at that year’s investment pace. A decade of dry powder is a lot, even for private equity. To see the average drop down…

Breaking down the latest in private equity fund performance Download PitchBook’s Report here. Private equity has had banner decade by multiple metrics. As mentioned in last week’s edition of the Lead Left in this column, cash flows are still trending positively, contributing to likely another banner year for fundraising across the industry. Delving more deeply, it’s…

Eight consecutive years in the black? Download PitchBook’s Report here. Private equity net cash flows are on pace for an eighth consecutive year in positive territory. Through Q3 2018 (the most recent data available), net cash flows (the difference between contributions and distributions) remained just above $100 billion. One more quarter’s worth of data to sift…

GP stakes fundraising starting to boom Download PitchBook’s Report here. An awaited flood of GP stakes fundraising is starting to take shape. The funds currently in the market will eventually amass more capital for the strategy than the past decade combined, according to our recently released analyst note. The majority of those raises will be housed…