A link to a free copy of the PEGCC’s first quarter private equity report is available at the end of this article.
“Private equity activity continued to recover in the first quarter,” said Douglas Lowenstein, the PEGCC’s President and CEO. “It is also worth noting that levels of uncalled committed capital continued to decline, hitting $414 billion globally, though this remains well above pre-recession levels. We can expect further growth in the index as the uncalled committed capital is deployed.”
Other key metrics captured by the first quarter PEGCC PE Index include:
• Fundraising by buyout funds totaled $24 billion, representing an increase of nearly 300% from its lowest level since the recession, recorded in 2009-Q4.
• 18 private equity-backed initial public offerings raised a total of $12.1 billion globally. This is a marked increase compared to the $4.3 billion raised from 12 IPOs in the same period during the previous year.
• Private equity-backed mergers and acquisitions declined slightly as smaller-sized buyout deals (less than $500 million in transaction value) dominated M&A activity.
• Equity contributions declined to an average of 35.4% of enterprise value, thus edging back closer to historical norms.
Designed to provide an accurate snapshot of the state of the private equity market at any given point in time, the PE Index is a composite measure of global private equity activity based on four key factors: total direct investment (including equity contributions to acquisitions and minority stakes, public equity investments, and other corporate financing); buyout transaction volume; fundraising; and the dollar value of private equity exits (portfolio company IPOs or sales to corporations or other investors).
The Index measures 100 when all four components are at their ten-year moving average. These four factors were chosen to make up the index because collectively they capture the most fundamental elements of the private equity market. The Private Equity Index is calculated using data provided by Thomson Reuters, Pitchbook, Preqin and the Council’s members.
To download a copy of the PEGCC first quarter private equity update click HERE.