The trending private equity investment sectors for August 2020 are highlighted below with a few example transactions.

Access to quality deal flow is the single largest determinant of success for investment banks and private equity firms. There is, however, a steady flow of potential deal intelligence that remains largely untapped.

POTENTIAL DEAL FLOW

The statistics from our private equity database show the median holding period for private equity portfolio companies is 4.8 years. That is, half of all portfolio companies are exited BEFORE they age 4.8 years under private equity ownership.

In recent years, many basic healthcare interactions have been moving to virtual health services – telehealth or remote video health services. The spread of the coronavirus has accelerated the trend.

Private equity firms early to invest in telehealth portfolio companies have benefited from the sudden and significant increased demand for telemedicine and related remote healthcare services.

Which private equity firms capitalized on this shift in momentum with more than one portfolio company in the virtual health space?

The PEI M&A Research Database shows 481 private equity platform transactions in medical device companies:

• 185 current investments, collectively owned by 127 unique private equity firms
• 296 prior (exited) investments.

Of the 185 current investments in medical device companies, the most active private equity firms for platform investments are:

The trending private equity investment sectors for July 2020 are highlighted below with a few example transactions.

Private equity platform investments in Software-as-a-Service companies increased significantly in 2020YTD as a percentage of all PE deals. Many SaaS companies have been less negatively impacted by the economic impacts of the coronavirus compared to other industries, both in terms of continued demand for their product or service as well as the agility to continuing operations, working from home. In many cases, SaaS companies have benefitted by the sudden change in industry dynamics.

The trending private equity investment sectors for June 2020 are highlighted below with a few example transactions.

The trending private equity investment sectors for May 2020 are highlighted below with a few example transactions.

Private equity platform investments in technology companies increased significantly in 2020YTD as a percentage of all PE deals. This is likely an influence of Covid-19, as private equity firms continued to close new investments in technology companies compared to the collective “pause” the PE firms placed on other industries.

Private equity investments in the healthcare sector, as a percentage of total PE platform transactions, have effectively doubled over the last 20 years.