The IT industry was one of the few sectors that saw an increase in PE deal flow in 2013. Unsurprisingly, capital invested in the industry surged last year, especially in the fourth quarter, which saw the $24.9 billion take-private buyout of Dell close. Both deal flow and capital invested were relatively soft in 1Q 2014, however, including a 20% drop in IT deal activity from 4Q 2013.
Likewise, PE deal flow and capital invested in the healthcare industry got off to a slow start in 1Q 2014, totaling $10.3 billion across 69 investments. Even so, Ron Ellis, director of transaction advisory services at McGladrey, expects 2014 to be a strong year for PE investments in the industry, as the increasing number of enrollees in the Affordable Care Act should translate into bigger customer bases for healthcare companies, particularly businesses that cater directly to patients and service providers.
More insight and in-depth information on PE investing in the IT and healthcare 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.
To access McGladrey's quarterly PE reports page, click here.