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Private Equity Investment Reaches Second Highest Level Since 2008

Industry Investment Volume Rose 26 Percent In Q3 2017

WASHINGTON, DC – Private equity investment volume rose to $187 billion in Q3 2017, a 26 percent increase from Q2, according to the American Investment Council’s (AIC) 2017 Q3 Private Equity Trends report, released today.

“Private equity remains a trusted partner for a diverse array of U.S. businesses,” said AIC President and CEO Mike Sommers. “The flexible nature of the industry allows private equity fund managers to consistently invest in businesses throughout the country, all the while delivering strong returns for our public pensioners.”

In addition to high levels of investment in the U.S. economy, Q3 2017 saw total equity financing for leveraged buyouts rise 44 percent. In Q3 2017, dry powder for buyouts also rose 6 percent to $608 billion, surpassing the Q2 2017 level of $572 billion.

Meanwhile, exit volumes and fundraising grew to $81 billion and $60 billion, respectively.

“This increased investment volume shows that the industry is working hard to deploy the record levels of dry powder accumulated in previous quarters,” said Bronwyn Bailey, AIC Vice President of Research and Investor Relations. “With continued increases in fundraising and dry powder, I expect private equity firms to smartly deploy their capital through the remainder of the year.”

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

1. U.S. PE Investment Volume Rises: U.S. private equity investment volume rose to $187 billion in Q3 2017 from $149 billion.

2. Equity Contributions Increase: Total equity financing for leveraged buyouts increased to 44 percent in Q3 2017, an increase from 42 percent in Q2.

3. U.S. Fundraising Rises: U.S. private equity fundraising volume increased 7 percent, from $56 billion to $60 billion in Q3 2017.

4. Dry Powder Rises: Callable capital reserves of global buyout funds rose to $608 billion in September 2017 from $572 billion in July 2017.

5. Exit Volumes Increased: U.S. private equity exit volume rose slightly from $80 billion to $81 billion in Q3 2017.

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.