PE in the U.S. on pace for its slowest year since 2012
July 17, 2015
Similar to the decline in activity we saw in the first quarter of 2015, 2Q private equity investment in the U.S. showed a somewhat lackluster performance. Our 3Q 2015 U.S. Private Equity Breakdown Report examines the trends that shaped 1H 2015, analyzing deal activity, fundraising, exits and more. For a brief summary of the report, check out the video above highlighting a few key points:
2Q saw 726 PE deals for a combined $105 billion, two low marks since 2013 that put the industry on pace for its slowest year since 2012.
There have been a surprisingly low amount of add-ons this year despite the talk around “buy and build” strategies.
Multiples and debt levels appear to have cooled off, with valuation multiples down from 10x medians the past couple years to 7.3x through the first half of 2015.
The 228 exits worth $119 billion in 2Q has helped this year already generate 70% of the total value exited in 2014—proof that we are truly in a seller’s market.
PE fundraising seems to have found a new sweet spot, with 53% of total 1H capital raised going to vehicles in the $1 billion to $5 billion range.