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2014 Annual Private equity Breakdown: U.S. edition

2014 Annual Private equity Breakdown: U.S. edition. Connect The Dots. PE Firm. Lender. Advisor. LP. VC Firm. Arranger. Fund of Funds. PE Firm. Company. Endowment. Law Firm. Advisor. Auditor. Consultant. ALL IN THE PITCHBOOK PLATFORM. ». Deal Activity. U.S. PE Deal flow .

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2014 Annual Private equity Breakdown: U.S. edition

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  1. 2014 Annual Private equity Breakdown: U.S. edition

  2. Connect The Dots PE Firm Lender Advisor LP VC Firm Arranger Fund of Funds PE Firm Company Endowment Law Firm Advisor Auditor Consultant

  3. ALL IN THE PITCHBOOK PLATFORM

  4. » Deal Activity

  5. U.S. PE Deal flow »Although deal flow was down, capital invested in 2013 rose to $426 billion—its highest point since 2007. Source: PitchBook

  6. U.S. PE Deal Flow »Investment accelerated throughout the year, with 3Q being one of the most active quarters since 2009. Source: PitchBook

  7. Deals (#) by Deal Type »Add-ons and minority deals continued to gain in popularity in 2013. Source: PitchBook

  8. Add-ons v. non add-ons »The number of add-on deals surpassed platform buyouts for the first time ever in 2013. Source: PitchBook

  9. Median EBITda multiples for Buyouts »The median EBITDA-to-valuation multiple for buyout deals rose to 10.2x in 2013, returning to pre-crisis levels.

  10. Median Debt % for buyouts »PE firms incorporated more debt in their deals in 2013, both as a percentage of the purchase price and as a multiple of EBITDA. Source: PitchBook

  11. Median Deal Size ($M) »At $50M, the median PE deal size is now at its highest level since 2007. Source: PitchBook

  12. Investments (#) by Deal Size »Transactions of less than $25M dipped below 40% of deal flow for the first time since 2007. Source: PitchBook

  13. Investments ($) by Deal Size »Deals of $1B or more represented more than 30% of capital invested for the first time since 2008. Source: PitchBook

  14. Investments (#) by Industry »B2B continued to be the main source of deal flow, while B2C fell below 20% for the first time ever. Source: PitchBook

  15. Investments ($) by Industry »B2C and IT grew their share of capital invested to the some of the highest levels ever in 2013. Source: PitchBook

  16. Investments by state »New York saw the biggest jump in deal activity in 2013, while Illinois experienced a severe 37% drop. Source: PitchBook

  17. Investments (#) by region »The Mid-Atlantic region reclaimed the title as the most active area for PE investment in 2013. Source: PitchBook

  18. » Exit Activity

  19. U.S. Exits »Despite both exit flow and capital exited dropping by 21%, 2013 still proved to be one of the best years for exits in the last decade. Source: PitchBook

  20. Exits (#) by Type »The 57 IPOs of PE-backed companies in 2013 marked a seven-year high, generating the second highest amount of capital on record. Source: PitchBook

  21. » Fundraising

  22. U.S. Fundraising »2013 marked the third consecutive year of increases in both fund closes and capital raised. Source: PitchBook

  23. Fundraising ($) by size »Funds of $5 billion or more accounted for nearly half of the capital raised in 2013. Source: PitchBook

  24. » Fund REturns

  25. PME Benchmarks methodology PitchBook’s newly developed PME Index and Benchmarks provide GPs and LPs with an effective way to compare returns from alternative investment funds with public equities. Indices produced by Russell Investments have been used to construct the PME vehicles used in computing the benchmarks. The PME equation can be customized using various indices from Russell Investments to create targeted peer groups (i.e. small-cap stocks, growth stocks, value stocks, etc.). As there are multiple ways to calculate a PME, PitchBook has employed both the PME+ and the Kaplan-Schoar PME methods. For more information on the PME calculations, please download the white paper at http://pitchbook.com/reports.html.

  26. PE NAV vs. Russell 3000 Index PME+ Vehicle PE NAV CAGR: 7.9% Russell 3000®Index PME CAGR: 2.6% »PE funds have generated annual returns 3x greater than the public markets over the last 12 years Source: PitchBook

  27. PE Kaplan-Schoar PME Benchmark by Vintage Year »PE funds consistently outperform the public markets, except for young funds that are still in the J-curve When using the KS PME, a value greater than 1.0 indicates outperformance of the public index (net of all fees); a value less than 1.0 indicates underperformance. For example, the 1.51 value for 2000 vintage funds means investors in a typical vehicle from that year are 51% better off investing in PE than if they invested in public equities over the same period. Source: PitchBook

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