The PE industry has evolved since the 1980’s. Back then, the industry used leverage to generate investor returns. In the 1990’s the PE Industry made money by buying companies and expanding them. The 2000’s ushered in a period of earnings growth fueled by strong beta market growth trends. And now, for better or for worse, the industry is being driven by returns PE firms are generating through management of and operational improvements in their portfolio companies. Continue reading The Brave New PE World
Tag Archives: Bain
Was PE Dealmaking Activity Strong or Weak in Q2 2012? The Experts Disagree
Just last week, a Preqin press release proclaimed that “There were 705 private equity-backed buyout deals in Q2 2012, valued at an aggregate $60.4bn – a 37% increase in deal value from Q1 2012, and a 6% increase from the $56.8bn in Q4 2011. In addition, 293 private equity-backed exits were announced in Q2 2012, with an aggregate value of $77.7bn – a significant rise from the $47.2bn in exit value seen in the previous quarter.” Continue reading Was PE Dealmaking Activity Strong or Weak in Q2 2012? The Experts Disagree
Bain and Forbes: Best PE Returns in 2012 will be Driven by Alpha Growth
In a series of articles in Forbes, contributors from Bain & Company dissected the current state of the PE market and discussed the outlook for investor returns in 2012 and beyond. The good news was that PE Industry returns will still likely out-pace most other comparable investments. The bad news was that returns will likely be at their lowest since at least 2009. All things remaining equal, the Bain contributors concluded that those PE firms that can drive organic growth from their portfolios would be those that would excel in the industry. Continue reading Bain and Forbes: Best PE Returns in 2012 will be Driven by Alpha Growth
As the PE Industry Approaches its “Deal Cliff” – More Bad News
The IMF today published more bad news for the middle market and for the PE sponsors looking to find value in their aging middle market portfolios. The IMF today confirmed that the global economy was growing even slower than previously thought and will grow slower than previously thought for at least the next 2 years. Continue reading As the PE Industry Approaches its “Deal Cliff” – More Bad News
June 2012 Was Likely the Most Active M&A Month Since Early 2011
For weeks we have been blogging about the overall weakness in the PE industry and specifically about weaknesses in capital formation, deal activity and most of all about how few investment exits there were in the industry. Just last week, we blogged about the poor May 2012 results vis-à-vis May 2011 and we like many others speculated that June 2012 and Q2 2012 as a whole could be as poor a month/quarter as Q1 2012 (which was one of the PE Industry’s poorest quarters in several years). Continue reading June 2012 Was Likely the Most Active M&A Month Since Early 2011