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April 09, 2018 No Comments Author: Andy Jones

Private Equity Funds – Minimum LP Investment

We currently track ~11,400 private equity funds in our Research Database at www.PrivateEquityInfo.com.

The minimum investment required from Limited Partners to invest in the various PE funds scales with fund size and typically ranges from $100,000 to $10 million.

Except for the largest 5% of funds (those with more than $1 billion in AuM), the median minimum investment for Limited Partners is about 1% of the total AuM. The largest funds have a minimum investment of about 0.4% of AuM.Private Equity Funds Limited Partner Minimum Investment

April 04, 2018 No Comments Author: Andy Jones

Private Equity Funds – Assets under Management

We currently track ~11,400 private equity funds in our Research Database at www.PrivateEquityInfo.com. Collectively, these private equity funds hold $1.9 trillion in Assets under Management (AuM).

For the funds we track…

  • the largest quartile of funds (those with more than $180 million AuM) represents 88% of the total private equity Assets under Management (AuM).
  • the largest 5% of funds (those with more than $1 billion AuM) represents more than half of the total private equity AuM.

Private Equity Funds Assets under Management

Assets under Management is the value of the fund’s remaining cash plus all assets. It is NOT net of debt.

Access to our PE funds data is available with the Pro-level subscription option.

February 15, 2018 No Comments Author: Andy Jones

Top 25 PE Firms Exiting Portfolio Companies

While it’s more common to study the most acquisitive private equity firms, I thought it might also be interesting to look at those firms with the most portfolio company exits in 2017.

The chart below shows the top 25 most active portfolio company sellers. Although they exited more portfolio companies than the other PE firms, these 25 firms were still net acquirers by a small margin (211 investments | 208 exits).

Top 25 Private Equity Firms Selling Portfolio Companies in 2017

February 13, 2018 No Comments Author: Andy Jones

PE Investments / Exits Ratio – Data Study

Using our M&A research database at www.PrivateEquityInfo.com, I studied private equity investments and exits for the years 2015, 2016 and 2017.

The ratio of the number of PE (Investments / Exits) over time, sliced by deal size shows a significant industry trend – private equity firms moving down market to focus on smaller deals.

Background

When the ratio of (Investments / Exits) = 1, private equity firms (in aggregate) are making one investment for every exit. This would be the “no growth” scenario. When the ratio is above 1.0, the private equity industry is a net acquirer of portfolio companies. This is the “growth” scenario.

The Data

For PE firms focused on Mid-, Large- and Mega-sized deals in 2015 – 2017, the (Investments / Exits) ratio was consistently about 2-to-1. Overall, private equity firms in these segments have been net acquirers of businesses over the past three years at the pace of roughly two portfolio company investments for each exit. This is no surprise as most people intuitively know private equity firms have become more prominent in recent years.

Size Ranges Defined (by Enterprise Value)

Small $0 – 50 million     Mid $50 – 250 million     Large $250 – 500 million     Mega $500+ million

 

Small Transactions

The same ratio for the PE firms focused on Small deals clearly illustrates that private equity has made a huge push into the lower middle market over the last two years. In the Smaller deal segment of the market, PE firms collectively made about 3-to-1 investments over exits in 2016 and 2017, compared to 2.3-to-1 in 2015.

Private Equity Investments / Exits Ratio (2015 - 2017)

 

The chart below is the exact same data, but with the bars re-arranged to group the years together.