Private equity quarterly exit volume was at its highest level on record at $125 billion for the second quarter of 2015, according to the Private Equity Growth Capital Council’s (PEGCC) Trends Report for the second quarter of 2015. Investment volume for the quarter was strong as well, totaling $112 billion, the second highest level for second quarter reporting since 2007.
“A record level of exit volume is welcome news for long-term investors who count on private equity for superior returns,” said Steve Judge, President and CEO of the PEGCC. “Public and private pension funds, endowments and foundations are the biggest beneficiaries of this unprecedented performance.”
Three other findings of the PEGCC report include: (1) Exit volume exceeded investment volume by $13 billion and provided strong returns to investors; (2) Exit volume grew from $70 billion in Q1 to $125 billion in Q2 of 2015; and (3) Callable capital reserves (dry powder) increased from $431 billion in December 2014 to $467 billion as of the end of June 2015.
“Private equity managers recognized and acted on conditions that created a very favorable exit market,” said Bronwyn Bailey, Vice President of Research for the PEGCC. “The private equity industry posted an impressive Q2 and once again demonstrated the value of patient capital to its investors.”
The PEGCC’s Trends Report is published each quarter and provides analysis of factors impacting private equity industry activity in the US. Data for the report comes from PitchBook, Preqin and Standard & Poor’s Leveraged Commentary & Data.
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. Founded in 2007, the PEGCC is based in Washington, DC (www.pegcc.org).
A PDF version of the report can be accessed by clicking HERE.
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-30-15