3Q fundraising and exits remain strong, while deal flow dwindles to lowest levels since early 2011
SEATTLE – PitchBook, the foremost data and technology provider for the global M&A markets, including private equity and venture capital, today released its 3Q 2014 global private equity investment data. The numbers indicate a shortage of quality investment opportunities, with $204 billion invested across 1,060 deals worldwide, the lowest levels since 1Q 2011. While investors remain somewhat skeptical, they’re finding plenty of opportunities to exit, with the median exit size climbing to upwards of $284 million, more than double of that in 3Q 2013. In response to a healthy exit environment, fundraising levels remain strong, with just over 87 percent of funds hitting their target this quarter. Additionally, it seems PE firms are setting more modest fundraising goals in the midst of a tough deal-making environment, which will be interesting to watch as 4Q unfolds.
Additional 3Q highlights
- Median exit size more than doubled in 3Q 2013
- 87.2% of funds hit target
- Global median PE deal size still strong at $42.7 million
- Global PE fundraising fell from 109 funds raising $87 billion in Q2 to 91 funds raising $59 billion in Q3
“Considering the trends we’re seeing in deal flow, exit activity and fundraising, it looks like PE firms are reacting to market trends and making their decisions accordingly,” says Alex Lykken, Senior Financial Writer at PitchBook. “They’re being opportunistic in everything they’re doing.”
For a more visual look at the 3Q global PE numbers, see the corresponding datagraphic, here.
PitchBook Data, Ltd. is the foremost provider of data and research technology for the global M&A markets, including private equity and venture capital. PitchBook empowers clients to make the most informed business decisions by providing them with the highest quality information on the entire investment lifecycle through its flagship product, the PitchBook Platform. This award-winning, web-based platform features a powerful suite of integrated technology that meets the diverse, data-driven needs of the private markets. Better Data. Better Decisions.
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