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September 25, 2018 No Comments Author: Andy Jones

U.S. Private Equity Firms Investing in South & Central America

In the past 12 months, we’ve had more customer inquiries about U.S. private equity firms investing in Latin America. Our database at www.PrivateEquityInfo.com currently shows 87 U.S.-based PE firms with current portfolio company investments in South & Central America (I excluded Mexico for this study… which would have added another 22 PE firms).

Of these portfolio company investments, 90% are concentrated in just 7 countries. More than half are in Brazil.

September 07, 2018 No Comments Author: Andy Jones

Private Equity Firms – Net Exiters

Over the past 12 months, private equity firms have been net acquirers of companies, making about 2.5 platform investments for every 1 platform exit. This significant growth in portfolio company ownership is buoyed by more private equity firms in the market and larger funds with more committed capital than ever before.

Contrary to this trend, 245 private equity firms in our database have taken advantage of the recent high valuations (relative to historical standards) and have become net exiters of portfolio companies over the last 12 months. Collectively, these 245 private equity firms exited 492 platform investments and only acquired 137 new platform companies – a ratio of 3.6 exits for every investment.

August 28, 2018 No Comments Author: Andy Jones

Top Private Equity Investors by Deal Team Size

Instead of providing a general list of the Top 10 Private Equity Firms with the largest, well-known firms, I wanted to identify formidable acquirers that may be lesser-known. To do this, I normalized the number of platform acquisitions (2018 YTD) by the number of deal makers (titles of Vice President and higher) at each firm. The lists below show the top 10 most acquisitive private equity firms, grouped by deal team size.

June 17, 2018 No Comments Author: Andy Jones

Industries Ripe for an Exit from Private Equity Firms

Portfolio companies currently held 5 – 7 years are likely ripe for an exit from their private equity owners. Industry concentrations within this aged group of portfolio companies might provide leading deal flow indicators. These industries, and certain sub-sectors within them, may have tidal changes of ownership as private equity firms convert equity to liquidity to provide returns to limited partners.

Using our database of private equity portfolio companies, I identified four industry sectors that are thematic in the U.S. portfolio companies currently held between 5 and 7 years:

  1. Manufacturing
  2. Technology
  3. Medical / Health
  4. Oil & Gas

No surprise really, since these are large industry categories. Consequently, for each industry above, I looked for sub-sector concentrations, discussed below.