PEGCC Launches Private Equity Trends Report; Finds Activity Rebounded in Q2

On August 8, the Private Equity Growth Capital Council released its first quarterly Private Equity Trends Report. The analysis highlights the key components affecting the private equity industry’s activity in the U.S., including investments, fundraising and exits.

The Trends Report finds that second quarter private equity activity rebounded after a sluggish first quarter. Specifically, private equity fundraising and exit volumes surged, indicating continued demand for private equity funds as well as greater distributions of capital to investors. Investment volume also increased, but at a moderate pace. After record private equity exit volumes in 2012, exits appear to have returned to trend based on a four-quarter rolling average. Compared to investment and fundraising, exits continue to be the bright spot in private equity activity.

“The trends in Q2 provide optimism for private equity’s investors and fund managers alike,” said Bronwyn Bailey, PEGCC Vice President of Research. “Exit volumes doubled in the second quarter, signifying that investors such as pension funds, charitable foundations and university endowments are receiving the capital distributions needed to finance their mandates. The sharp increase in fundraising also shows that investors continue to have a strong appetite for private equity investing,” Bailey concluded.

Key findings about the private equity activity in the second quarter of 2013 include:

  • Quarterly U.S. private equity investment deal volume increased from $69 billion in the first quarter of 2013 to $71 billion in the second quarter.
  • Fundraising volume increased from $17 billion in the first quarter to $42 billion in the second quarter.
  • Exit volume doubled from $21 billion in the first quarter to $42 billion in the second quarter.

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.