News
Private Equity Investment Grows In 2016 Q3

Investment volume rises as fundraising falls for the third quarter of 2016

WASHINGTON, D.C. – The American Investment Council (AIC) released its 2016 Q3 Private Equity Trends Report [HYPERLINK], which outlines the industry’s overall activity for the third quarter of 2016. According to the report, U.S. private equity investment volume rose 10 percent from Q2 to Q3, up to $171 billion. Private equity exit volume declined 22 percent, falling from $102 billion in Q2 to $79 billion in Q3.

“As we enter the last stretch of 2016, we find that private equity firms continue to find strong investment opportunities,” said AIC President and CEO Mike Sommers. “The trust that pension funds, endowments, and other limited partners have in private equity is well-placed, as private equity continues to beat market expectations and help its investors achieve financial success.”

The $171 billion invested by private equity in the U.S. economy during the third quarter makes it the third highest quarterly investment level since the financial crisis. Bronwyn Bailey, AIC Vice President of Research and Investor Relations, believes that private equity funds are increasingly in it for the long haul.

“The 10 percent increase in investment coupled with the drop in exit volume suggests that private equity funds are becoming laser-focused on new long-term investment opportunities.” said Bailey. “These funds are putting a heavy emphasis on forming new long-term partnerships with companies that add real value to the economy.”

Below are three key findings from the report. Read the full report here.

  1. PE Investment Volume Increases: U.S. private equity investment volume rose from $156 billion in 2016 Q2 to $171 billion in 2016 Q3.
  2. Fundraising Continues To Fall: Annual U.S. private equity fundraising volume decreased from $56 billion in 2016 Q2 to $45 billion in 2016 Q3.
  3. Exit Volumes Decrease: Annual U.S. private equity exit volume decreased from $102 billion in 2016 Q2 to $79 billion in 2016 Q3.

About the American Investment Council

The American Investment Council (AIC) is an advocacy and resource organization established to develop and provide information about the private investment industry and its contributions to the long-term growth of the U.S. economy and retirement security of American workers. Member firms of the AIC consist of the country’s leading private equity and growth capital firms united by their successful partnerships with limited partners and American businesses. More information about the AIC can be found at www.investmentcouncil.org.