Could PE Return Multiples Begin to Stagnate? Driven by the seller’s market over the past few years, recent private equity fund vintages have seen their return multiples improve considerably. Distributions back to limited partners have risen to staggering levels, with 2014 seeing no less than $467.8 billion alone…. Login to Read More...
Canadian Deal Flow Strong, Bolstered by Investor Interest in Middle Market Canadian private equity activity has remained heightened throughout 2015, driven by strong numbers from the main hubs of investment, Ontario and British Columbia. Through 3Q 2015, 238 transactions worth C$37.3 billion have been… Login to Read More...
U.S. Interest in Canada Remains Strong For the fifth straight year in a row, the number of unique U.S. private equity firms active in Canada has exceeded domestic firms by a considerable margin, with a disparity of 33 through the end of September 2015. Although unlikely to surpass the height of 2013, the number of…
U.S. Private Equity’s Overhang Remains Significant At times nowadays, U.S. private equity firms look like they may well become victims of their own success. The top tier of investors has been able to outperform public markets to such an extent that they are still attracting plenty of capital commitments from numerous limited partners…. Login to
Median Hold Period for U.S. Middle Market Companies Drops for First Time in Years Private equity’s ‘hangover’ from the buyout boom era, with steadily aging investments skewing median holding periods for portfolios ever upwards, has been well-documented. PE holdings in the U.S. middle market—which has become increasingly popular among… Login to Read More...
Could PE’s role in the M&A boom reverse? Fueled by a variety of factors including the historically unprecedented run of low interest rates, mergers and acquisitions are on pace to hit a record in terms of value this year. Private equity players have not had as big a role in the boom this year as…
After a slow third quarter, 2015 has only seen 32 private equity-sponsored initial public offerings (IPO), raising a combined $7 billion. The IPO window for PE sponsors in the fourth quarter of 2015 may be narrowing, although it’s unclear how much concern that should really cause for now. After all, even though an initially disappointing…
U.S. Middle Market Continues Healthy Plateau The U.S. private equity middle market remains strong, tracking relatively within the record ranges of last year. At 474 closed transactions in Q3 for a total of $80 billion in invested capital, 2015 is now at just over 1,400 deals and a total of $250 billion. That puts it…
Median Multiples for U.S. PE Wane Further Even taken with a grain of salt, the decline in median EBITDA multiples for U.S. private equity buyouts has become more and more pronounced as third quarter numbers roll in. Faced with the headache of high valuations, PE firms have not only been dialing down activity—albeit at a…
Overall Optimistic, Investors See Choppiness Ahead Private equity firms typically target companies that are in trouble. It’s the heart of the traditional buyout model, which, although shifting as the industry matures, remains the core of PE dealmaking. However, the relative health of target companies can shift considerably depending on overall deal trends—nowadays is no exception….