The US Private Equity industry faces a complex deal making environment that could turn unfriendly if current trends hold. Company inventory and dry powder have ballooned, while deal flow and fundraising carry on at historic levels. Meanwhile, fewer portfolio companies are switching hands, which only adds to the industry’s heft. Certain trends have evolved recently—most notable are PE’s interest in the tech sector and extended fund life cycles.
Key takeaways include:
- After reaching new highs in 2016, M&A multiples inched higher in the first quarter of this year.
- US private equity fundraising is still on a tear.
- One-fifth of all PE deals in the first quarter involved companies in the IT sector.
In this breakdown report we’ll examine each phase of the industry’s cycle and investigate the factors most relevant to investors.
Download the full report→