PitchBook has released its 2012 Annual Private Equity Breakdown. In this report, PitchBook and Merrill DataSite have partnered to explore U.S. private equity investment, exits and fundraising with a focus on the trends emerging during 2011.
The data and trends from 2011 yield a number of interesting observations:
• Despite a challenging second half of the year, U.S. private equity investment in 2011 managed to hold relatively steady from 2010 overall with 1,630 completed investments totaling $144 billion of invested capital.
• 2011 also saw the continued reemergence of large deals, such as Kinetic Concepts and Del Monte Foods.
• The percentage of debt used in deals under $1 billion dropped to a ten-year low of 46% in 2011, as PE firms were forced to cope with the combination of a tougher debt financing market and an increase in company valuation multiples.
• Unlike private equity investment, private equity exit activity was not hit with a slowdown during the second half. Instead, slightly more exits were completed during the third and fourth quarters than during the first and second. Overall, exit activity held steady from 2010 with 415 completed sales or IPOs of PE-backed U.S. companies, totaling $107.5 billion in combined deal sizes.
• Private equity investors continued to face a challenging fundraising environment, but they also managed to at least hold fundraising activity
Available for download:PDF reportExcel spreadsheetPowerPoint deck