Mega-deals Down, Mega-exits up Few investors are as opportunistic as PE firms, which need to invest at entry points low enough (and exit high enough) to justify their investment models. With valuations where they are right now,… Subscribe to Read MoreAlready a member? Log in here...
Like the overall PE market, valuations for middle-market companies are elevated. The median valuation-to-EBITDA multiple in 1H 2014 was 10.7x, up from 10.2x last year. Despite those steep price tags,… Subscribe to Read MoreAlready a member? Log in here...
Are Valuations Pushing Out Closing Times? PitchBook recently conducted a survey with Hilco Global of private equity deal terms and valuations…. Subscribe to Read MoreAlready a member? Log in here...
Going back several quarters, larger PE funds have performed better than smaller funds, generally speaking. Funds of at least $1 billion outpaced smaller size buckets across the 1-, 3-, 5- and 10-year IRR horizons through 4Q 2013,… Subscribe to Read MoreAlready a member? Log in here...
PE Firms Pumping out the Cash U.S. PE firms distributed about $98 billion more back to investors than they called down in 2013. Total distributions amounted to $232.5 billion last year, a ten-year high and 3% increase over total distributions in 2012. While distributions increased in 2013,… Subscribe to Read MoreAlready a member? Log in
Secondary Buyouts – An Obvious Solution The above graph suggests that 2014 is set to decline in terms of secondary buyout deal (SBO) flow. If the pace set in the first half of the year continues, this year would represent an 11% fall from the robust 2013 levels…. Subscribe to Read MoreAlready a member? Log
More but Less More The private equity industry during the first half of 2014 has acquired 2.1 companies for every 1 company that was exited. The headline implication being that the number of companies owned globally by private equity investors continues to grow…. Subscribe to Read MoreAlready a member? Log in here...
The Fundraising Trail is OPEN The private equity fundraising trail has been wide open of late, with the last four quarters seeing at least 70 funds close each quarter. Over the last 18 months, U.S. PE funds have picked up $291 billion across 418 different funds. 2014 won’t be quite as big as 2013,… Subscribe
Not that long ago, it would seem strange to see news of a private equity firm buying a venture-backed company; in today’s private company market, though, it is becoming a weekly, and almost daily, occurrence. In 2013, there were 102 of these deals. Based on the first half of 2014, we expect the year to…
Despite all the talk of a “playground” in Europe for private equity buyers, we aren’t seeing the kinds of deal flow we might expect if we only read the headlines. We found a decline in buyout activity in the second quarter, which saw 261 control investments versus 332 in Q1. Second quarter deal activity didn’t…