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Private Equity Trends 1Q 2012 Presentation Slide Deck
Presentation transcript:

Private Equity Trends 1Q 2012 Presentation Slide Deck Try the PitchBook Platform: Phone: Consult the Research Team: Phone:

Source:PitchBook The PitchBook Platform REQUEST A DEMO:

Private Equity Deal Flow

Source:PitchBook 2011 PE Investment Above 2009 Lows Number of Deals Closed (red line) and Total Capital Invested by Year (blue bars)

Source:PitchBook 2011: The Year of Two Halves Number of Deals Closed and Total Capital Invested by Quarter

Source:PitchBook Midwest Led PE Deal Flow with 360 Deals Percentage of Deal Volume (count) by Region

Source:PitchBook B2B and B2C Dominate PE Deal Activity Percentage of Deal Volume (count) by Industry

Source:PitchBook B2B and B2C Deal Flow Increased in 2011 Percentage of Deal Volume (count) by Industry

Source:PitchBook Capital Investment Continued Shift to IT, Healthcare & Energy Percentage of Deal Volume (capital) by Industry

Source:PitchBook Deals Under $250M Accounted for 75% of Deal Flow Percentage of Deal Volume (count) by Deal Size Range

Source:PitchBook Large Deals Attracted More Capital Investment Percentage of Deal Volume (capital) by Deal Size Range

Source:PitchBook Add-ons Continue to Sweeten Deals Add-on Deals as Percentage of Buyout Deals

Source:PitchBook Median Buyout Size Hit New Record Median Capital Invested in U.S. PE Transactions

Source:PitchBook Still Low Leverage in the Middle Market Percentage of Debt Used in Buyouts

Source:PitchBook Buyout Multiples Finished Close to 2008 High EBITDA Multiples of Buyout Transactions

Private Equity Exits

Source:PitchBook Private Equity Exits on Par with 2010 Annual PE Exits by Corporate Acquisition, IPO and Secondary Sale

Source:PitchBook Exit Strategies Consistent with Long Term Averages Percentage of P.E. Exit Volume (count) by Exit Type

Source:PitchBook Private Equity Investors Exited $108B of Investments Quarterly PE Exits by Corporate Acquisition, IPO and Secondary Sale

Source:PitchBook Corporate Acquisitions Dominated Exits Median Exit Size ($M)

Source:PitchBook PE Exits Likely to Stay Strong in 2012 Number of U.S. Private Equity Company Inventory by Deal Year

Source:PitchBook Inventory Buildup Resulted in Increased Holding Length Median Time from Buyout to Exit

Private Equity Fundraising

Source:PitchBook Company Inventory & Capital Overhang Stall Fundraising Number of Funds Closed and Total Capital Raised by Year

Source:PitchBook Fundraising Remained Flat Number of Funds Closed and Total Capital Raised by Quart er

Source:PitchBook Funds Under $1B Accounted for 39% of U.S. PE Fundraising Percentage of U.S. P.E. Funds (capital) by Fund Size

Source:PitchBook Middle Market Funds Dominate Fundraising Percentage of U.S. P.E. Funds (count) by Fund Size

Source:PitchBook PE Investors Sitting on $425B of Dry Powder Capital Overhang of US PE Investors by Vintage Year

Source:PitchBook New GPs are Entering the Private Equity Industry Number of Funds Closed by Year

Source:PitchBook Funds are Closing Faster Average Time to Close U.S. PE Funds

Source:PitchBook Average 2011 Vintage Fund 13% Larger than 2010 Average Fund Size ($M)

Greater Private Equity Performance

Source:PitchBook PE Led in Average IRR For 7 Consecutive Vintages Average Fund IRR by Vintage Year and Fund Type

Source:PitchBook Fund Performances Bounced Back Median 1-Year Rolling Horizon IRR by Fund Type

Source:PitchBook Private Equity Outperforming in the Long Run Horizon IRR – Private Equity, Venture Capital and Public Index

Private Equity Performance

Source:PitchBook Larger Funds Lead Returns Across Vintages Private Equity Average Fund IRR by Vintage Year

Source:PitchBook Larger Funds Recently Yielded Higher Returns Private Equity Horizon IRR by Fund Size

Source:PitchBook Recent PE Funds Hit Positive IRR in 2010 Median IRR by Years Since First Investment

Source:PitchBook LPs Waiting for Distribution for 2003 & Younger Funds Average Private Equity Return Multiples by Vintage Year

Source:PitchBook Dramatic Quartile Differences Private Equity IRR Quartiles by Vintage Year 3 rd Quartile 2 nd Quartile Top Quartile Bottom Quartile Source:PitchBook

Matured Funds Called 92% of Committed Capital Private Equity Capital Call

Venture Capital Performance

Source:PitchBook Mid-Sized VC Funds Showed Growth Trend Venture Capital Average Fund IRR by Vintage Year

Source:PitchBook $150M-$250M Funds Generated 2 nd Highest Returns Venture Capital Horizon IRR by Fund Size

Source:PitchBook Economy Impacted Returns More than Fund Age Median IRR by Years Since First Investment

Source:PitchBook TVPI Shows Improvement, DPI Remains Low Average Venture Capital Return Multiples by Vintage Year

Source:PitchBook VC Funds in Upper Quartiles Show Positive Returns Venture Capital IRR Quartiles by Vintage 3 rd Quartile 2 nd Quartile Top Quartile Bottom Quartile

Source:PitchBook High % of Committed Capital for New Investments Venture Capital Call

Fund of Funds Performance

Source:PitchBook Fund of Funds Delivered Returns Across Vintages Fund of Funds IRR Quartiles by Vintage 3 rd Quartile 2 nd Quartile Top Quartile Bottom Quartile

Source:PitchBook Fund of Funds Slower to Distribute Capital Average Fund of Funds Return Multiples by Vintage Year

Mezzanine Performance

Source:PitchBook Strong and Consistent Performance Across Vintages Mezzanine IRR Quartiles by Vintage 3 rd Quartile 2 nd Quartile Top Quartile Bottom Quartile

Source:PitchBook Mezzanine Funds Fastest in Distribution of Capital Average Mezzanine Return Multiples by Vintage Year

Real Estate Performance

Source:PitchBook Top Quartiles Show Slow Recovery Real Estate IRR Quartiles by Vintage 3 rd Quartile 2 nd Quartile Top Quartile Bottom Quartile

Source:PitchBook 2004 – 2008 Funds Still Recovering Average Real Estate Return Multiples by Vintage Year

Non-U.S. Investor Performance

Source:PitchBook PE Vintages Under 2004 Perform Closely to U.S. Counterparts Average Non-U.S. PE Return Multiples by Vintage Year

Source:PitchBook VC Vintages Perform Better than U.S. Counterparts Average Non-U.S. VC Return Multiples by Vintage Year

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