equity

How PE Grew Up and Changed in the Past Decade

by

April 21, 2012

The Deal Pipeline has some stats on how PE has grown in article about the maturing process in the industry. In the past decade alone, assets under management grew from approximately USD750 billion in December 2001 to almost USD 3 trillion in December 2011. The author points out that in 1981, there were 23 private equity firms. In 2011, there were more than 4,000.

 

Elsewhere, PitchBook has even more statistics (and excellent infographics) on the past decade of US PE investment, delving deeply into fundraising, most-liked target industries, types of deals done, and deal size data. Image Source: PitchBook

Key facts

• The decade saw 17,361 private equity deals totaling USD 1.73 trillion of invested capital

• Lower middle-market companies accounted for 81% of the decade’s deal flow

• The median private equity investment multiple peaked at 11.5x in 2008

• The average time between investments dropped from six months in 2002 to 2½ months in 2007

• Add-on deals accounted for 46% of PE buyouts by the end of the decade

• Texas saw more PE deals and invested capital than any other state

• Business Products and Services was the top industry for PE activity

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