The Private Equity Growth Capital Council has released its first quarterly Private Equity Trends Report which analyses the key components affecting the private equity industry’s activity in the US, including investments, fundraising and exits.
The Trends Report finds that second quarter private equity activity rebounded after a sluggish first quarter. Specifically, private equity fundraising and exit volumes surged, indicating continued demand for private equity funds as well as greater distributions of capital to investors. Investment volume also increased, but at a moderate pace. After record private equity exit volumes in 2012, exits appear to have returned to trend based on a four-quarter rolling average. Compared to investment and fundraising, exits continue to be the bright spot in private equity activity.
“The trends in Q2 provide optimism for private equity’s investors and fund managers alike,” said Bronwyn Bailey, PEGCC Vice President of Research. “Exit volumes doubled in the second quarter, signifying that investors such as pension funds, charitable foundations and university endowments are receiving the capital distributions needed to finance their mandates. The sharp increase in fundraising also shows that investors continue to have a strong appetite for private equity investing,” Ms. Bailey concluded.
Key findings about the private equity activity in the second quarter of 2013 include:
- Quarterly U.S. private equity investment deal volume increased from $69 billion in the first quarter of 2013 to $71 billion in the second quarter.
- Fundraising volume increased from $17 billion in the first quarter to $42 billion in the second quarter.
- Exit volume doubled from $21 billion in the first quarter to $42 billion in the second quarter.
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, DC (www.pegcc.org).
Click HERE for a free copy of the 5-page Private Equity Trends Report.
© 2013 PEPD • Private Equity’s Leading News Magazine • 8-9-13