$1B+ Deals Down in 2013, But Capital Invested Up 37%
January 17, 2014
Private equity investors made fewer $1 billion+ investments in U.S.-headquartered companies in 2013 compared to 2012 but invested more money through those deals overall, according to the PitchBook Platform. About $36.5 billion more was spent last year in such deals than in 2012, thanks to the two mega-buyouts of Dell and Heinz that, combined, accounted for $48.1 billion of invested capital. Without those two deals, the capital invested total would also have declined last year.
That said, 2013 recorded a sizeable increase in deals of at least $2.5 billion in size, which were up 50% from 2012 in terms of deal count. Investments in the $1 billion to $2.5 billion range dropped 29% from 2012 to 2013 (38 deals to 27). Much of that difference was concentrated in a decline of big-ticket energy investments, which slid from 10 deals in 2012 to only two last year.
In terms of deal count, both the B2C and IT industries have been more popular targets for billion-dollar PE deals than the B2B industry. B2C deals have accounted for 23% of the $1 billion+ deal activity since the beginning of 2010, with IT not far behind at 21%. The B2B industry came in third at 20%.
PitchBook Platform users can click on the chart to customize it.