2014 Private Equity Exit Volume Highest Level on Record

Investment Volume, Dry Powder, and Other Metrics Show Year-to-Year Growth

WASHINGTON – The Private Equity Growth Capital Council’s (PEGCC) Trends Report for the fourth quarter of 2014 was released today. The report indicates that the industry recorded its highest exit volume ever last year, at $257 billion, and also closed the year with the most investment volume since 2007.

“We finished 2014 with all the key metrics for industry health in strong standing,” said Steve Judge, President and CEO of the PEGCC. “The private equity industry invested a record amount of capital into American companies last year.  Fund managers continue to find new investment opportunities and provide the necessary capital to help businesses expand and innovate.”

The report also found that:

– Callable capital reserves increased significantly from $399 billion in December 2013 to $467 billion in December 2014

– Total equity financing for leveraged buyouts increased from 37 percent at the end of 2013 to 39 percent for 2014.

– While overall private equity fundraising dipped slightly from 2013, the fourth quarter of 2014 saw a significant increase in fundraising over the third quarter of 2014, increasing from $32 billion to $58 billion.

Bronwyn Bailey, Vice President of Research at the PEGCC, noted that the exit trends meant strong returns for investors.

“Exit volume in 2014 translated into tangible benefits for investors, namely, record distributions from private equity funds,” Bailey said. “If public indices remain high, I expect continued robust exit volume in the upcoming year.”

Released each quarter, the PEGCC’s Trends Report provides an analysis of key factors impacting private equity industry activity in the U.S. The full report can be found here.

About the PEGCC Private Equity Trends Report

Designed to provide a snapshot of the private equity market, the quarterly Private Equity Trends Report analyzes key factors that affect U.S. private equity investing.  The Private Equity Trends Report provides analysis based on data from PitchBook, Preqin and Standard & Poor’s Leveraged Commentary & Data.

About the Private Equity Growth Capital Council

The Private Equity Growth Capital Council (PEGCC) is an advocacy, communications and research organization and resource center established to develop, analyze and distribute information about the private equity and growth capital investment industry and its contributions to the national and global economy.  Established in 2007 and formerly known as the Private Equity Council, the PEGCC is based in Washington, D.C.  The members of the PEGCC consist of the world’s leading private equity and growth capital firms united by their commitment to growing and strengthening the businesses in which they invest.  More information about the PEGCC can be found at www.pegcc.org.