Investments to Exits Ratio Down to Decade-Low 2.1x
August 19, 2014
Worldwide, the PE industry acquired an average of only 2.1 companies for every one exit during 1H 2014, one of the lowest ratios on record. Beginning in 2010, the investment-to-exit ratio began to decline dramatically, from 4.1x in 2009 to almost half that in our most recent checkup. With investments slowing and exits accelerating, it's not too surprising to see the global company inventory leveling off somewhat in recent years. Through 1H 2014, 13,113 companies were backed by PE investors, though only 190 have been added to the inventory so far this year.
These trends, among many others, are covered at length in our upcoming 2H Global PE Exits and Company Inventory Report, which will be released tomorrow morning. Covering global exit activity and company inventory levels, the report breaks down exit trends through several lenses, including exit types, exits by industry and regional sections, highlighting activity in the U.S. and Europe. Keep an eye out for tomorrow's newsletter to download the report, which will also be available for free download in our reports library.