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The current state of US private equity in 7 charts

Here are seven key charts from our 2016 Annual US PE Breakdown, including the latest data on EBITDA multiples, company inventory, exit value and fundraising success.

Here are seven key charts from our 2016 Annual US PE Breakdown, which is available for free by clicking here.

Median EBITDA multiples of US M&A (including buyouts)

Median enterprise value surged to 10.9x EBITDA for M&A transactions. In short, there are too many dollars chasing too few feasible investment opportunities.

US PE-backed company inventory

Heightened company inventory limits available targets, while also prompting concerns around the quality of the typical current portfolio company.

US PE activity in IT & energy

The tech & energy sectors enjoy relatively stronger PE deal flow.

US add-on % of buyout activity

Add-ons have hit perhaps a peak proportion of all buyout activity in the US, as PE firms source within lower reaches of the middle market.

US PE-backed exit activity

Exit value remains strong on a historical basis even as volume slides.

US PE-backed exits ($B) by type

The corporate M&A environment still drives much of exit value for PE sellers, even if exit volume is also heavily reliant on fellow PE sponsors.

US PE funds (#) to hit target

PE firms are continuing to experience nigh-unprecedented success in fundraising, testifying to even more targeted fundraising strategies and limited partners' willingness to maintain exposure to the asset class.

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    Garrett James Black, CAIA is a manager at PitchBook, leading dual teams of publishing and analysts focused on partner content. The publishing team of editors and designers works closely across multiple teams of PitchBook institutional research analysts to produce all PitchBook industry reports, analyst notes, emerging technology research and more. In addition, they produce the quarterly PitchBook Private Market PlayBook. The partner content team of analysts and project managers focuses on developing custom content with clients and partners, creating bespoke analysis of key segments grounded in PitchBook private markets datasets. Garrett also works with clients directly on key research projects such as the flagship KPMG Venture Pulse series, and deep dives into cutting-edge technical innovation in fields such as agtech and nanomaterials in partnership with select clients.

    He is a CAIA charterholder and obtained a Bachelor of Arts in biochemistry and economics, plus a certificate in computational finance, from the University of Washington.

    Disclaimer: All opinions, statements, endorsements and activity in general on Twitter are exclusively his own and in no way affiliated with PitchBook.

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