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February 20, 2019 No Comments Author: Andy Jones

Private Equity Portfolio Trends – Healthcare and Pharma

I previously wrote about the trend of declining private equity investments in manufacturing companies, (as a percentage of the total number of platform portfolio companies acquired). So, where is the focus shifting? The next few blog posts will aim to answer this question by looking at investment trends in different sectors.

This post is about private equity firms investment trends in Healthcare & Pharmaceutical companies.

The chart below shows PE platform investments in healthcare companies steadily increasing. Private Equity Investments into Healthcare Companies

February 13, 2019 3 Comments Author: Andy Jones

Private Equity Portfolio Trends – Manufacturing

Private equity portfolio company data from Private Equity Info shows clear trends of how private equity firms invest in certain industries over time. The graph below shows the investment trend for manufacturing, from 1990 through 2018.

Private equity investments in manufacturing companies, as a percentage of the total number of platform portfolio companies acquired, continues to decline.

Private Equity Trends in Manufacturing

January 27, 2019 No Comments Author: Andy Jones

Private Equity Fund Raising Trends

2018 showed a record number of new private equity funds raised. This continues the upward trajectory in terms of the number of new funds each year.

# of new investment funds

NOTE – venture capital funds continued to increase in quantity as well while hedge funds have remained fairly constant.

How Big are the Private Equity Funds?

January 17, 2019 2 Comments Author: Andy Jones

Private Equity Holding Period Distribution – 2018 Exits

Our private equity database recorded 998 portfolio company exits in 2018. This is considerably fewer exits compared to recent years.
Year – # of Exits
2018 –   998
2017 – 1,316
2016 – 1,263
2015 – 1,351
2014 – 1,291

As previously discussed, the median holding period declined to 4.7 years in 2018, down from 5.0 in 2017. The chart below shows the holding period distribution for 2018 private equity company exits.

Private Equity Holding Durations - 2018

January 11, 2019 No Comments Author: Andy Jones

Interview – Bill Welch, Director of Business Development at E&A Companies

I recently spoke to Bill Welch with E&A Companies. With some minor edits, the text below captures our conversation.

Bill Welch


E&A Companies is not a private equity firm. We consider ourselves primarily as business operators. Our Founder and Chairman started the business 40 years ago to acquire, actively operate and grow businesses. We don’t have any outside investors. We have no limited partners. The money we invest in a business (along with conservative bank leverage) is one hundred percent the personal liquidity of our two Partners – Alan Hubbard and Devin Anderson.

January 06, 2019 No Comments Author: Andy Jones

PE Portfolio Company Holding Periods – Updated

I periodically update the private equity portfolio company holding periods study to track this trend over time. In both March and August 2018, I reported a slight downward trend in portfolio company holding durations. That trend continues with this update, although more steeply downward.

Now accounting for all 2018 exits tracked, the holding period has continued to decline. For 2018 exits, the median holding periods is 4.7 years, down from 5.0 years for 2017 exits.

The chart below shows the median holding period for the portfolio company exits each year.

Private Equity holding Periods