Global private equity flow hits post GFC low

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Data published by Pitchbook suggests that the volume of global private equity deals slowed in the first quarter of 2015 to a new low post the global financial crisis.

The number of deals over the period was 1,124, according to the data, a 30% decrease on the same period a year ago.

Total capital invested fell to $208bn from $253bn between the quarters, however, the median deal size remained “somewhat steady”, suggesting the market is focused on less frequent investments at higher cost.

Among the key trends spotted in the data include:

  • The broader M&A market continues to make life difficult for private equity firms as active strategic acquirers, with plenty of investable capital, continue to price PE firms out of deals.
  • Private equity firms continue to adjust their investment strategy as add-ons and minority growth deals continue to represent a large portion of deal flow.
  • Private equity firms are taking advantage of the strong M&A market to sell their investments with 469 investors having an exit during the quarter totaling nearly $91bn.
  • The first quarter wasn’t great for PE fundraising but likely the result of a strong Q4 than anything else.

 

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