2013 was a banner year for U.S. private equity carveouts, according to the PitchBook Platform. The yearly amount of capital invested through the takeover of non-core assets jumped 47% from 2012 to 2013, despite a muted increase in the number of carveout deals last year (219 in 2012 to 224 in 2013). In fact, from 2010 to 2013, when the stock market was beginning to get its legs back, PE capital invested in carveout deals ballooned by 158%.
Interestingly, the amount of capital going toward B2B carveouts shrank dramatically between 2011 and 2013. About 58% of all capital invested in 2011 carveouts went to the B2B industry. That percentage shrank to 32% in 2012 and only 19% last year. In 2012, the energy industry was the new hot target for PE carveouts; the industry accounted for 41% of the total capital invested through carveouts that year, versus only 11% in 2011. The IT industry took its turn in 2013, accounting for 30% of the year's total capital invested through carveouts, compared to a paltry 4% in 2012.