PE deal-making in the B2B industry got off to a relatively strong start in 1Q 2014, building on the momentum seen in the second half of 2013. Capital invested in the industry increased almost 60% from the prior quarter, recording the second highest quarterly total going back to 1Q 2008. "2014 started out very solid," said Michael Fanelli, director of transaction advisory services at McGladrey. "The pipeline was reloaded at the end of 2013, and we still have that coming to market."
On the B2C side, deal activity was a tick higher in 1Q 2014 from the previous quarter, though 4Q 2013 was lackluster compared to recent quarters in terms of both deal flow and capital invested. Broader economic trends like unemployment and consumer confidence weren't stellar toward the end of last year, impacting the 2013 holiday shopping season and waving a cautionary flag at PE firms active in the B2C sector.
More insight and in-depth information on PE investing in the B2B and B2C industries in 1Q 2014 can be found in the Private Equity Deal Flow Profiles published by McGladrey. Powered by PitchBook, the reports include current industry trends, deal activity and exit activity, as well as several insights from McGladrey professionals. Two additional reports covering the IT and healthcare industries will be highlighted and distributed by the PitchBook newsletter early next week.
To access McGladrey's quarterly PE reports page, begin here.