PitchBook recently had the opportunity to conduct a Q&A session with Jeff Bunder, the global private equity leader at EY, who provided commentary on recent private equity activity for our recently released 2014 Annual U.S. Private Equity Breakdown. Bunder took a look at the potential main drivers for deal flow in 2014 and discussed fundraising and exits in the year ahead.
Q: Add-on acquisitions outpaced platform buyouts for the first time ever in 2013. What drove this trend and do you see it continuing in 2014?
A: PE firms continue to focus on growing their existing portfolio companies, and the increase in add-on deals is a reflection of that. Additionally, the credit markets have been a key source of capital for a wide array of deal types, including refinancings, LBOs and dividends. While this is largely positive for PE, it’s also responsible, along with record-breaking equities markets, for driving valuations higher in many industries.
Q: In addition to more add-ons, we have also seen a higher proportion of minority transactions in recent years. What do you think is behind this?
For Bunder's answer and the rest of the interview, click here.