According to the preliminary quarterly data pulled from the PitchBook Platform, private equity and venture capital investment declined during the summer quarter. Private equity deal-making registered its third consecutive quarterly drop, with 342 deals totaling $58 billion completed in 3Q. Energy and Information Technology were the only exceptions for the quarter, as both saw modest upticks in investment activity. Private equity firms closed 28 funds totaling $35 billion in capital commitments during the quarter, registering it as the third best quarter in the last three years for PE fundraising. Exit activity also remains a bright spot, with 135 exits in 3Q.
On the venture capital side, investors completed 656 deals totaling $5.9 billion in 3Q, about a third less than the previous quarter. However, 2Q 2012 was one of the best quarters on record, so a pullback was not completely unexpected. Despite recent weakness, 2012 is on par with 2011 in terms of venture capital deals through the first three quarters. One sign of strength for the VC industry has been fundraising. Venture capital firms have already closed 70 funds with $17.3 billion in 2012, increases of 105% and 47%, respectively, compared to the same period last year.
Look for final numbers and a more detailed analysis of recent deal flow, exits and fundraising trends for both private equity and venture capital in our upcoming quarterly reports publishing October 10 (PE) and October 15 (VC).