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February 06, 2018 No Comments Author: Andy Jones

Private Equity Moving Down Market

There are more private equity firms with more capital deployed (and waiting to be deployed) than ever before. Consequently, finding good target companies to acquire has become increasingly competitive.

To enter a less competitive deal space, many private equity firms have moved down market, showing an increased interest in middle market and lower mid-market companies. The rationale is that there would be fewer buy-side financial sponsors competing for the same deals because there is a larger pool of target companies (there are more mid-market companies than larger companies) and because traditionally, PE firms have been less focused on the lower end of the market.

This rationale may no longer hold. The Private Equity Info M&A research database now shows a substantial interest from financial sponsors across nearly all segments of the market – large and small. The database contains:

January 29, 2018 No Comments Author: Andy Jones

Private Equity Investing in Digital Health Companies

Recently, I’ve noticed an increase in private equity firms investing in Online Digital Health companies.

This space has traditionally been more reserved for the venture capital funds. Either the online medical software industry has sufficiently matured to attract the attention of traditional private equity firms or the PE firms are moving to a slightly earlier stage investment strategy… or both.

Recent Private Equity Investments in Online Digital Health Companies

December 14, 2017 No Comments Author: Andy Jones

Private Equity Investments in Public Companies – by Sector

Private equity firms currently hold ~700 positions in publicly-traded companies. Nearly three-fourths of these positions are in the healthcare, consumer services, technology, finance and energy sectors. Private equity investments in healthcare companies is the largest sector focus (32% of investments).

Private Equity Investments in Public Companies by Sector

Update: Read our follow-on study showing Private Equity Investments in Public Healthcare Companies

December 08, 2017 2 Comments Author: Andy Jones

Private Equity Investments in Public Companies (Part 3)

A year ago, I created a portfolio of 655 publicly-traded stocks based on private equity ownership in each company. I called it the “PE-basket”.

When I checked the performance of this PE-basket at the 6-month mark, it was lagging the performance of the general market. However, now that a full year has passed, the PE-basket has in fact out-performed the broad market as well as the other benchmarks I selected.

Publicly traded PE-owned portfolio companies