Secondary buyout activity has subsided in 2013 from its 2012 levels, according to the PitchBook Platform. Some of that decrease is due to the last minute push at the end of 2012 to get deals through before incoming tax hikes. Deal flow during the first half of 2013 has been noticeably slower than during last year's first half. By this point last year, private equity firms had completed 124 secondary buyout transactions involving U.S.- or Canada-based companies, well ahead of the 81 recorded so far in 2013.
"The first six months of this year have been light because of the pull forward in the second half of 2012," says McGladrey's Milton Marcotte in a report that PitchBook and McGladrey will release next week. "But we're starting to see the normal pipeline of activity return and there is a lot of new M&A activity with new companies in play." Sales processes, he added, are competitive at the moment. "Everyone knows that it's a seller's market."