Home Business Here Are 13 Charts That Depict Today’s US Private Equity Environment

Here Are 13 Charts That Depict Today’s US Private Equity Environment

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Our 3Q US PE Breakdown covers all aspects of the private equity industry with rich data and thoughtful analysis, but not everyone has the time to dive straight into a 17-page publication. For quick highlights, feel free to browse the charts below.

If they pique your interest, download a free copy of the full report here.

US Private Equity activity by quarter

Through 3Q, transaction counts have fallen and while total capital invested at first sight looks high, a significant proportion of that comes from the $60 billion Dell-EMC merger.

US add-on % of buyout activity

Dealmakers continue to look lower down the value spectrum as multiples remain historically high. To that end, 2016 has seen add-ons account for the highest percentage of PE deals we’ve tracked in at least a decade.


Private Equity

Median debt percentages for US M&A (including PE buyouts)

While low compared to enterprise value, median debt usage is at 5.4x EBITDA, down from 2013-2015 but still relatively high on a historical basis.

Private Equity

Median EBITDA multiples of US M&A (including PE buyouts)

2016 has seen an uptick in healthcare and IT activity, two sectors that tend to trade at higher EV/EBITDA multiples due to their perceived high potential for growth, so that contributes to the increase.

Private Equity

US PE deals by sector

IT deal value through 3Q stood at $131 billion, the highest of any sector. On the other hand, B2C is tracking well behind the pace it had set the past couple years.

Private Equity

US PE-backed exit activity by quarter

Though still high by historical standards, the falling-off speaks to some softening of the overall M&A cycle—not only in PE-backed companies.

Private Equity

US PE-backed exits by type

Secondary buyouts stood at 45% of all exits in 3Q, while IPOs remain subdued. When it comes to exit value, though, M&A is particularly crucial.

Private Equity

US PE fundraising by quarter

Though it had been on pace for a post-recession record, capital raised in 2016 is now poised to roughly equal the last few years.

Private Equity

US PE funds (#) to hit target

90% of all PE funds hit their fundraising targets through 3Q, which is on pace for a record percentage and the seventh consecutive year that rate has grown.

Private Equity

Median US PE fund size

The median buyout fund has raised $225 million thus far in 2016, the highest figure since 2010 and indicative of LPs’ recent preference for backing fewer and larger funds.

Private Equity

US PE funds (#) by type

Traditional buyout funds comprised 66% of funds closed through 3Q, highest since at least 2006. Energy and mezzanine funds have had particularly slow years.

Private Equity

These were just the highlights. Be sure to download the full report here.

Article by Joshua Mayers, PitchBook


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