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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.

July 17, 2018 No Comments Author: Andy Jones

Private Equity Fees

Private Equity firms with committed capital have a pool of limited partners who invest in a fund controlled by the private equity management team (the general partner). The private equity firm (the GP) is compensated through a management fee plus a performance fee. This arrangement is often called the “2 and 20” fee schedule, as discussed below.