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BCG’s Analyzes Global PE Market and Size 2012

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March 27, 2012

DealMarket commissioned BCG to research and analyze the shape and size of the PE and M&A global markets, including family offices and corporate acquirers, as well as fundraising and dealmaking trends. (Disclosure: the author of this article is paid by DealMarket to write, select, and edit the DealMarket Digest. DealMarketand its management does not influence the content selection or contents produced in the newsletter.)

The report has as an extensive section on PE transactions. One of the more interesting sets of figures is a comparison of deals done to deals abandoned. The authors point out that the number of abandoned transactions is “considerably” large. Over past five years, each year about fifty percent of deals are abandoned, due to lack of financing or failure to acquire. (See graphic). BCG used data from VentureXpert and Zephyr to arrive at the figures.

Key Findings

  • PE transactions reached an all time high in 2007, currently rebounding from low in 2009
  • Majority of deals made in VC segment
  • Buyouts are leading by deal volume
  • 76% of all PE transactions conducted from 2007 to 2011 were smaller than USD 200m, representing 9% of total deal volume
  • Deal activity and volume clearly dominated by developed markets: Europe most volatile
  • PE fundraising still significantly below all-time high in 2007 at -52%
  • USD 255 billion in funds raised in 2011
  • Family offices and Endowments with significant “outstanding dry powder” USD 500 billion
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