Secondary Buyouts Make 3Q Comeback, PitchBook Data Show
September 30, 2013
Private equity firms exited more companies via secondary buyouts in the third quarter, as investors increasingly look to each other to pass off their portfolio companies, according to data released today by PitchBook.
PE firms completed 124 exits totaling $21.1 billion in 3Q 2013, of which 56 and $6.62 billion were secondary buyouts—both quarterly highs for the year. Though corporate acquisitions led the way with 60 exits, soaring valuations may be putting a crimp on corporate acquirers’ budgets, and they may be unwilling to commit the capital required to buy PE-backed companies in the coming quarters. In addition, uninspiring performances from PE-backed IPOs in the second quarter—when 15 companies went public—may have also caused PE firms to shun the public markets in 3Q, when just eight PE-backed companies had an IPO.