Private Equity Shows Strong Finish as Investment Continues Upward Trend in Q4

Private equity activity finished 2013 on an uptick, according to the Private Equity Growth Capital Council’s quarterly Trends Report. During the fourth quarter of 2013, both investment and exit volumes maintained their steady increases by 14 and 44 percent, respectively.

“Private equity had a strong fourth quarter in 2013. In addition to a continued rise in investment and exit volumes, we saw fundraising volume spike during the last months of the year, indicating robust investor appetite for the asset class,” said Bronwyn Bailey, PEGCC Vice President of Research. “Overall, the metrics we measure show meaningful increases in the fourth quarter.”

In addition, the PEGCC Trends Report found that dry powder grew 2 percent, from $384 billion in September 2013 to $391 in December. Equity financing also increased to 44 percent during the fourth quarter, the highest rate since 2010.

“This report demonstrates the importance of private equity to the U.S. economy. Last quarter, private equity invested more in U.S.-based companies than the previous year and returned a record amount of capital to investors, including pension funds, university endowments and charitable organizations,” said Steve Judge, PEGCC President and CEO. “It’s important that lawmakers recognize the industry’s ultimate beneficiaries and ensure that policies continue to encourage investment.”

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.