Private Equity Deal-Making Collapses in First Quarter of 2013

Exits of private equity firms from investments fell 67 percent by volume and 81 percent by dollar value.

According to PitchBook’s second quarter Private Equity Breakdown, private equity deal-making collapsed in the first quarter of 2013.  Over the last decade, platform-type buyout deals have contracted from representing over half (51 percent) to about one-third (34 percent).  Exits of private equity firms from investments fell 67 percent by volume and 81 percent by dollar value.  The balance of 2013 looks better, with large funds raising capital while also expiring capital, cheap debt and aging portfolio companies.

The associated PowerPoint was presented at Around The Valuation World in 90 Minutes in May, 2013. To view the PowerPoint, click here.

Gregory R. Caruso, Esquire, CPA, CVA, is a Principal at Harvest Business Advisors.  His primary practice area for the last 14+ years is the valuation, preparation, and implementation of family, management, and market business sales.  He has been involved in more than 250 transactions.  This includes valuation; value creation, succession strategy, resolving family and management conflict, and brokerage using his experience gained as an attorney, accountant, investment banker, real estate broker, and contractor over the last 30 years. Mr. Caruso can be reached at (410) 507-5441 or gcaruso@harvestbusiness.com.