Expensive valuations may mean a decline in buying on a quarterly basis, but sellers are capitalizing on the current market climate, completing 193 exits in 3Q 2014 alone. According to PitchBook's 4Q 2014 U.S. PE Breakdown Report, sponsored by Merrill DataSite and co-sponsored by Murray Devine and BKD, $159.2 billion was exited between 1Q and 3Q 2014, already eclipsing 2013's total of $155.3 billion. At that pace, 2014's total could exceed 2012's post-crisis record of $200.7 billion in capital exited.
Other highlights from the report:
Due to lofty valuations in the upper end, middle-market activity is strong. A historically high amount of deals and capital invested were in transactions between $100 million and $1 billion.
There’s a big uptick in exits valued at more than $2.5 billion; many pre-crisis investments are being sold off opportunistically.
88% of all funds that closed between 1Q 2014 and 3Q 2014 hit their fundraising targets.
To explore more of the U.S. PE Breakdown, download the report by clicking here.