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.
Released each quarter, the PEGCC’s Trends Report provides an analysis of factors impacting private equity industry activity in the US. The report provides analysis based on data 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 and its contributions to the national and global economy. Established in 2007, the PEGCC is based in Washington, DC (www.pegcc.org).
“This report demonstrates the importance of private equity to the US economy. Last quarter, private equity invested more in US-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.”
For a free copy of the Trends Report click HERE.
© 2014 PEPD • Private Equity’s Leading News Magazine • 2-13-14