Considering the expensive price tags currently attached to quality targets, it makes sense that "buy and build" has become an increasingly popular PE strategy. But while the first half of the year has reflected a marginal uptick in frequency, the sheer number of add-ons globally has followed the decline of overall activity. According to the PitchBook Platform, PE investors sponsored 1,244 add-ons during 1H 2016, compared to 1,578 in 1H 2015. As a portion of all buyouts, add-ons amounted to 58.3% of transactions so far in 2016, up from 56.5% during the same timeframe in 2015.
By sector, B2B has seen the most add-on activity this year by a large margin, garnering 43% of all deals. IT follows at 16%, with healthcare making up another 13%. All three sectors are on pace for their highest proportion since at least 2011.
Here are the top add-on sponsors of 1H and their deal counts: