Shades Of 2013: Private Equity Exits Hit $273B

Shades Of 2013: PE Exits Hit $273B by PitchBook

PE exits slide in first half, Strategics remain strong

  • $273 billion in exits across 1,067 sales in 1H 2016
  • On pace to exit $546B across 2,134 deals for the year, down 15% and 13% respectively from 2015
  • Strategic acquirers dominate playing field, accounting for 73% of all PE-backed exit value in 1H 2016
  • Exit valuations experience drop from 2015 highs, though still historically strong

PE Exits

Michael Mauboussin: Here’s what active managers can do

michael mauboussin, Credit Suisse, valuation and portfolio positioning, capital markets theory, competitive strategy analysis, decision making, skill versus luck, value investing, Legg Mason, The Success Equation, Think Twice: Harnessing the Power of Counterintuition, analysts, behavioral finance, More Than You Know: Finding Financial Wisdom in Unconventional Places, academics , valuewalkThe debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More


  • IPOs’ median time to exit reaches new high of 5.4 years, more than double that of ‘07-’08
  • Median time to exit by strategic acquisition & SBO remains steady
  • Investment-to-exit multiple same as 2015 due to simultaneous dampening of both PE investments and exits thus far in 2016

Corporate Acquisitions

PE Exits

  • $199B in exits across 566 sales in 1H 2016, slightly behind last year’s record-setting pace
  • Strategics account for 53% of all PE-backed exits and 73% of PE-backed exit value
  • Median acquisition EV/EBITDA falls to 8.7x– still high by historical standards
  • Median acquisition size down 14% from 2015, to $142M– limited supply of quality targets

Secondary Buyouts

PE Exits

  • SBO exit value on pace to be 32% below 2015 levels
  • SBOs make up 44% of all PE-backed exits, and 23% of exit value
  • Valuation-to-EBITDA fell to 7.3x in 1H 2016, lowest since 2009– reflects growing fears of volatility ahead
  • Median deal size down 20% from 2015, to $191M

PE-backed Public Offerings

PE Exits

  • On pace to exit $12 billion across 33 sales in 1H 2016, down 46% and 37% respectively from 2015
  • None of the companies to go public in 1H 2016 listed above the high end of their target price range
  • IPOs fall to just 4% of PE-backed exit value– reflects the increasingly popular “stay-private” strategy

PE-backed Inventory

PE Exits

  • There were more than 14,000 PE-backed companies in N. America and Europe midway through the year
  • 930 of those (6% of the total) found new PE ownership in just the last six months, while 16% of PE inventory still dates to pre-2008