Opportunity Ahead for PE? The finance community has been hit hard the past few weeks. Even long-term asset classes like venture are keeping tabs on short-term fluctuations in the market. Private equity doesn’t seem as concerned, and shouldn’t be. The biblical seller’s market that began in… Subscribe to Read MoreAlready a member? Log in here...

It’s become common knowledge (and maybe conventional wisdom) that PE buyers are much more disciplined today than they were in 2007. One useful comparison is the amount of PE capital spent versus the amount raised. Going back to 2011, note the correlation between the two totals and how little they deviate from one another. This suggests…

Do holding periods go down from here? For the first time since the crisis, the median holding period for private equity is heading downward. For all exits, the H1 median came in at 5.25 years, a sharp fall from the 6.12 median at year end. Companies that were… Subscribe to Read MoreAlready a member? Log

Another big year in the works The U.S. middle market is heading toward another big year. Through H1, 895 deals worth a combined $159 billion have closed, not far off the pace of last year’s records. This despite another jump in median purchase price multiples, which hit 10.5x through the end of June. Valuations have risen… Subscribe

Take-privates making a comeback? One of the big differences between today’s M&A boom and 2007’s comes down to which buyers were involved. Almost a decade ago, PE firms were the muscle behind M&A. Mega-buyouts in the $10B+ category were common, inflating overall deal activity to record levels. Today’s market is… Subscribe to Read MoreAlready a

Secondary buyouts are down by value but consistent by volume. With news of First Data going public, it’s worth remembering how few 2006-2008 PE investments ended up transferring to other PE sponsors, at least $10B+ companies. Realistically, those buyouts needed to be exited via IPOs or, in some cases, through… Subscribe to Read MoreAlready a

Investment-to-Exit Ratio at Record Low While it’s true that PE firms remain hopeful buyers, and the number of deals has risen over the years, they’re much more active on the sell side today. Through June, the U.S. investment-to-exit ratio is at a record low 1.7x in 2015…. Subscribe to Read MoreAlready a member? Log in

PE’s New Sweet Spot: $1bn-$5bn Private equity seems to have a new sweet spot for fund sizes. 53% of total capital raised in the U.S. went to the $1-$5bn range, the third time since the crisis that it’s closed a majority of LP dollars. The big exception is 2013,… Subscribe to Read MoreAlready a member?

Multiples are having an impact, and that’s a good thing Global private equity activity was down in H1, by several metrics. Compared to H1 2014, deal flow declined 16% by count and 21% by total value, to 2,728 deals worth $404.7 billion. Last year’s numbers were 3,265 deals worth a combined $514.7 billion…. Subscribe to Read

If it seems like the PE market is getting crowded, it’s been that way for a while. The number of active global PE firms, defined here as having raised a fund in the prior five years or completing a deal in the prior three, has been on an almost-uninterrupted increase since 2000. From 1,453 active firms…