Secondary buyouts are always a unique topic in private equity, featuring PE ramifications on both the buy and sell sides. With the SBO channel wide open in the current seller-friendly market, we decided to look for trends amid the 4,000 such deals tracked in the PitchBook Platform since the start of 2005. What we found often reflects overall PE trends, just to a greater extent:
B2B's slice of global SBO activity grew by about 32% from 2009 to 2014. For total PE deal flow, that increase was 14%.
Add-ons made up nearly 22% of SBOs last year, more than 2x the percentage from 2010. In the same period, add-ons had about a 55% popularity bump in overall PE activity.
While total PE deal counts have dropped every quarter since 1Q 2014, completed SBOs actual trended up in 2Q and 3Q last year, dipping back down the past two quarters.
To access our data on SBOs, or to explore other PE trends by deal type, industry, location and more, click here.