US Dealmaking Rebounds


September 19, 2013

The Private Equity Growth Capital Council (PEGCC) recently released its first quarterly Private Equity Trends Report. It took a look at PE industry activity in the US, including investments, fundraising and exits. The report says that second quarter private equity activity rebounded after a sluggish first quarter.


Specifically, fundraising and exit volumes “surged”, indicating continued demand for PE funds, as well as greater distributions of capital to investors.  Investment volume also increased, but at a “moderate pace”.


After record private equity exit volumes in 2012, exits appear to have returned to trend based on a four-quarter rolling average, said the PEGCC.  Compared to investment and fundraising, exits continue to be the bright spot in private equity activity.


The trends in Q2 provide optimism for private equity’s investors and fund managers alike. Exit volumes doubled in the second quarter, signifying that investors such as pension funds, charitable foundations and university endowments are receiving the capital distributions needed to finance their mandates.


The sharp increase in fundraising also shows that investors continue to have a strong appetite for private equity investing, said a PEGCC spokesperson.

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