Sat, Aug 1, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Private Equity Strategies

PE-Backed Buyout Exits Jump in Q2

Wednesday, July 23, 2014

A study by data provider Preqin showed the value of private equity-backed buyout exits in the second quarter of 2014 saw a notable jump up from Q1 2014, with 392 exits valued at $138bn in Q2 2014 compared to 331 exits valued at $90bn in the first quarter. This is the highest quarterly exit value for any quarter in the period since the financial crisis, and the second highest number of exits in the same period, behind Q4 2013 which registered 405 exits.

Christopher Elvin, head of private equity products at Preqin commented, "The growing stability of economies and markets around the world is having a positive impact on the exit environment for the private equity industry. Private equity firms selling their stakes in portfolio companies throughout the second quarter of the year have achieved the highest quarterly value in the post-crisis period."

He continued, "On the flip side, growing markets and higher competition are making it harder for private equity buyers, with deal flow falling over the past two quarters. As economies strengthen further, this should present even greater exit conditions for private equity firms to sell on companies, but may prove problematic for the industry to identify good value investment opportunities, especially in a period of strong fundraising and increasing dry powder levels."

According Preqin, the second quarter of 2014 saw a drop in deal flow, however, with a total of 743 private equity-backed buyout deals announced during the quarter valued at $78bn, compared to 733 deals valued at $82bn in Q1 2014. This represents a 1% rise in the number of deals yet a 5% drop in aggregate deal value.

Another Preqin study found study found that global venture capital investment activity has shown that the average value of Series D and later stage deals that occurred in H1 2014 was $64.1m, a significant increase on the average size of late stage deals done in 2013, which stood at $34.4m. The aggregate value of venture capital deals that took place in Q2 2014 was up 27% on the aggregate value of Q1 2014 deals, yet the number of venture capital financings was 1% lower.

Elvin said, "Companies towards the end of the venture capital financing cycle have received far larger investments on average over the first half of this year compared to recent years. In fact, all venture capital financing stages except growth stage/expansion have seen higher average values in H1 2014, as firms invested over $38bn in companies over the first two quarters of the year. Even though specific countries and regions, such as India, have seen a notable uptick in deals being made, the general trend across the world is that of static numbers of deals taking place over recent quarters."

 
This article was published in Opalesque's Private Equity Strategies our monthly research update on the global private equity landscape including all sectors and market caps.
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies


Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

banner