The frenzied private equity activity during the fourth quarter of 2012 receded in first quarter of 2013. The Private Equity Growth Capital Council’s Private Equity Index, which measures overall private equity activity in the U.S., decreased 42 percent from its fourth quarter level to 75.0 during the first quarter of 2013. However, when evaluated on an annual basis, private equity fundraising and exit volumes continue to trend upward.
The PEGCC Private Equity Index is a composite measure of U.S. private equity activity based on three factors: the dollar value of total private equity-backed investment, fundraising, and exits. The Index measures 100 when all three components are at their 10-year moving average. These three factors collectively capture the most fundamental elements of the private equity market.
“Uncertainty surrounding changes in U.S. fiscal policy in 2013 heightened the pace of private equity deal making on the buy and sell side at the end of 2012,” said Bronwyn Bailey, PEGCC Vice President of Research. “This amplified activity normalized in the first quarter of 2013, and it is likely that some first quarter activity was accelerated into the fourth quarter of last year. When examined on an annual basis, private equity activity remains on track.”
Key findings in the first quarter of 2013 include:
- Quarterly U.S. private equity investment deal volume fell from $126 billion in the fourth quarter of 2012 to $52 billion in the first quarter of 2013.
- Fundraising volume decreased from $33 billion in the fourth quarter to $16 billion in the first quarter.
- Exit volume decreased from $62 billion in the fourth quarter to $16 billion in the first quarter.
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The Private Equity Growth Capital Council 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, the PEGCC is based in Washington, D.C. (www.pegcc.org).
© 2013 PEPD • Private Equity’s Leading News Magazine • 5-14-13
