“Investment, deal volume, and exits all increased sharply in 2010 and the Index finished the year well above its 10-year moving average as a result,” said Jason Thomas, the Council’s Vice President for Research. “But while investment activity in 2010 reached levels that hadn’t previously been seen since early 2008, fundraising remains the soft spot showing no increase over 2009 and remaining near 2004 levels.” Mr. Thomas added that fundraising is lagging the recovery primarily due to high levels of uncalled buyout and growth capital reserves. As of January 2011, the industry’s “dry powder” was estimated to be $446 billion globally.
At year end, the Index stood at 115.3, its highest level since the fourth quarter of 2007. Other key metrics captured by the fourth quarter PEGCC PE Index include:
1.Private equity-based buyout activity for all of 2010 was at $221 billion, the highest since 2008.
2.For the year, there were 96 PE-backed IPOs that raised in excess of $35 billion globally, up from 32
IPOs that raised $12.7 billion globally in 2009.
3.US private equity exits for the year exceeded $110 billion, more than double 2009’s total.
4.Equity contributions to buyouts remained near record highs, with an average gross leverage ratio of
2.41-to-1 in 2010, or a 41% of enterprise value above the 10-year moving average of 35%.