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…
PE alpha isn’t what it used to be Download PitchBook’s Report here. We tend to think of PE’s halcyon days as 2005-07, the dealmaking and fundraising bonanza years right before the music stopped. Industry players who have been around long enough probably remember better times and slightly better numbers. The industry is certainly much bigger and…
Public firms have always been busier Download PitchBook’s Report here. We mentioned last week that the flagship funds of public PE firms are now bigger than they were pre-crisis, while the same (mostly) can’t be said for private firms. The cynic might point out the obvious, that public firms are incentivized to raise more money because…
Public versus private The private equity industry has matured quite a bit over the years. The most visible marker is the handful of firms that have gone public, despite the public market’s difficulty in valuing the complex, variable cash flows that are inseparable from the PE model…. Subscribe to Read MoreAlready a member? Log in
Why are add-ons getting so much bigger? Download PitchBook’s Report here. The median add-on size almost doubled in the span of two years. The $41 million median seen in 2016 ballooned to $76 million last year, an 86% difference. At first glance, it looks like platform deal sizes have gone up much more rapidly, but charts…
A closer look at foreign investment There’s a tradeoff between welcoming foreign investment and protecting national security. That’s becoming a more common tradeoff to consider in the private equity world, where foreign investors are keen to get involved in direct investments…. Subscribe to Read MoreAlready a member? Log in here...
MM exits off to a slow start Download PitchBook’s Report here. It’s early still, but middle market exits are off to a historically slow start in 2019. Just $27 billion worth of sales were inked in the first quarter off of 137 exits. On a quarterly basis, both were low marks going back to 2010, when…
Core MM had a big 2018 Download PitchBook’s Report here. The US middle market went gangbusters last year, setting records in both volume and dollars. Two of the three segments of the middle market, however, inched down YoY…. Subscribe to Read MoreAlready a member? Log in here...