Prequin, the online database on the alternative assets industry, said 2013 was notable for seeing the highest annual number of 1,348 Private Equity-backed exits after 2006. In monetary terms these exits aggregated $303B, which was the second highest annual value during the same time.
Private Equity firms able to cash in
This shows that the exit environment had vastly improved for Private Equity buyout firms, says Prequin.
Here is a chart showing the trends in Private Equity-backed exits since 2006.
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Here are the top five big ticket exits during 2013:
2013 also solid year for new deals
“2013 has seen notable growth in deal making activity for the private equity industry. Although the number of deals being made has dropped compared to 2012, the aggregate value of deals that took place is at its highest point since before the global financial crisis,” said Ignatius Fogarty, Head of Private Equity Products, Preqin.
Indeed, during 2013, Private Equity buyout firms entered $274B worth of new buyout investments through 2,830 deals. In terms of value, this was the highest witnessed since pre-crisis days.
The largest PE-buyout transactions during 2013 are shown below:
Asia and emerging markets see slowing deal tempo
“While there have been strong deal levels in developed economies such as Europe and North America, there has been a significant drop off since 2011 in the value of deals taking place in Asia and other emerging markets. This trend is reflected in fundraising figures, demonstrating that both investors and fund managers are becoming more risk averse,” observes Fogarty.
Sectors that saw PE interest
The Industrials (23%), Information Technology and Consumer & Retail sectors (both 14%) saw the highest number of deals during 2013. In terms of value, however, Information Technology took the cake at 20%, while Food & Agriculture and Consumer & Retail (both 16%) were the next best.
What lies ahead in 2014
“With exit activity also buoyant, particularly for the IPO market, and fundraising experiencing notable gains, 2014 looks set to be a very positive year for the industry,” says Fogarty.