Pitchbook

Only available on StudyMode
  • Topic: Private equity, Private equity firms, Venture capital
  • Pages : 22 (5247 words )
  • Download(s) : 44
  • Published : April 9, 2013
Open Document
Text Preview
PitchBook
4Q 2012

Private Equity
Sponsored by

Breakdown

Bet ter Data. Bet ter Decisions.

PitchBook

4

Table of Contents
Intro Letter ............................................................................. 1 Private Equity Deal Flow ........................................................... 2 Investments by Deal Size .......................................................... 3 Private Equity Add-on Activity ...................................................4 Investments by Industry ........................................................... 5 Investments by Region and State ............................................... 6 Private Equity Exit Activity ....................................................... 7 Fundraising and Largest Funds Closed ....................................... 8 Conclusion ............................................................................. 9 League Tables .....................................................................9-11 PitchBook Methodology ......................................................... 12

COPYRIGHT © 2012 by PitchBook Data, Inc. All rights reserved. No part of this publication may be reproduced in any form or by any means – graphic, electronic, or mechanical, including photocopying, recording, taping, and information storage and retrieval systems – without the express written permission of PitchBook Data, Inc. Contents are based on information from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. Nothing herein should be construed as any past, current or future recommendation to buy or sell any security or an offer to sell, or a solicitation of an offer to buy any security. This material does not purport to contain all of the information that a prospective investor may wish to consider and is not to be relied upon as such or used in substitution for the exercise of independent judgment.

Deal-Making Continues to Slide in 2012
Private equity (PE) continued to falter in 3Q 2012, with firms closing 362 deals totaling $59 billion. The quarter marked the third consecutive quarter of declines in PE activity and was the slowest quarter for deal-making by volume and capital invested since 2009. At the current pace, 2012 will be the slowest year for PE deal-making since 2009 and the second worst year since 2004. The PE industry continues to experience seismic shifts in the wake of the financial crisis. Dealmakers have maintained their heightened focus on smaller transactions, as deals of less than $50 million now account for more than half of deal flow. Conversely, mega-deals of more than $1 billion have represented their lowest proportion of capital invested in more than a decade. PE investors looking for reasons for optimism can turn to exits and fundraising, which have exhibited relatively strong performance so far this year. Capital exited slipped following a record-breaking 2Q, but the 143 deals executed in 3Q 2012 was a slight improvement and in line with the recent trend. In terms of fundraising, PE firms closed 28 funds with a total of $35 billion in 3Q 2012. While this represents a slight decrease from the previous quarter, 3Q still registered the third best fundraising total in the last three years. “While the PE industry continues to face many headwinds, the recent strength in exits and fundraising suggest that an increase in investment activity is imminent,” says Richard A. Martin, Jr., Senior Director at Merrill DataSite. “Investors have been reluctant to engage in large deals, but the risk of expiring capital commitments will compel firms to act.” Inside this report, PitchBook examines PE activity in 3Q 2012 and provides an outlook for the rest of the year, with an analysis of deal flow, exit activity, and fundraising. Here are some of the highlights: → → → → → PE firms closed 362 deals totaling $59 billion Deal flow decreased in all industries except Information Technology and Energy Deals of...
tracking img