Get the Industry Trends Report
November 21, 2017 No Comments Author: Andy Jones

Milestone: surpasses 75,000 portfolio companies

As our research team continues to build a high quality, proprietary database of private equity firms, portfolio companies and key executives, we have now surpassed 75,000 portfolio companies (includes both current and prior investments) and 39,000 senior level private equity executives.

Further, because we understand the exacting standards within the M&A community, we are absolutely fanatical about the quality of our data. It’s recent, complete and constantly updated &validated for accuracy.

November 13, 2017 No Comments Author: Andy Jones

Private Equity Fund Concentrations

A study of our private equity fund data shows the bulk of the $1.8 trillion in private equity assets are concentrated within a small number of PE firms.

  • The largest 1% of funds represent 22% of the total private equity assets under management (AuM). Further, these top 1% of funds are operated by only 34 unique private equity firms.
  • The top 5% of funds (122 unique PE firms) control nearly half of all private-equity-managed assets.

Although the mega funds control a disproportionate percentage of the total AuM, there is a long tail to the distribution of assets on the lower end of the market.

So while the top 50% of funds control 96% of all private equity assets, the remaining 4% of assets is still $75 billion dollars. This is a sizable amount of capital deployed to mid-market companies by 3,200 funds.

Consequently, if your firm offers sell-side advisory services, and you think your client’s company might be too small to attract the attention of the private equity universe because they have traditionally looked at much larger deals, this may no longer be the case.

Private Equity Fund Concentrations

November 09, 2017 No Comments Author: Andy Jones

Private Equity Fund Size – by Assets Under Management

In a previous blog, I showed the distribution of private equity funds by the amount of capital raised. This study shows the distribution of private equity funds by assets under management (AuM).

The 6,472 private equity buyout funds included in this study account for a staggering $1.8 trillion.

The distribution of fund AuM tends to center around $100 – $250 million, with a median fund size of $65 million.

Private Equity Fund Size Distribution by Assets under Management

November 04, 2017 No Comments Author: Andy Jones

Database Criteria – Private Equity

We are very particular about the firms we choose to include in our database. Because our target customer is a middle market investment banker, we only include those firms that have a reasonably high probability of going to the closing table and consummating the transaction. As such, we look for either committed capital or recent history showing the firm is actively closing deals in the marketplace.

October 24, 2017 No Comments Author: Andy Jones

The Spectrum of Business Financiers

There are numerous types of business investors and a multitude of names by which they are coined; angel, seed, start-up, venture capital, private equity, mezzanine, leveraged buyout, management buyout, public companies, etc.

Investors are usually more active within a certain bandwidth corresponding to the growth cycle of a company from birth to maturity. A simplistic view is to divide investors into the following main categories, which coincide with the phases of a company’s maturing process:

  • Angel – founding
  • Venture Capital – early stage
  • Private Equity – growth phase
  • Mezzanine – growth/maturing
  • Public – mature
October 17, 2017 5 Comments Author: Andy Jones

Private Equity Investment Trends in Manufacturing

I ran some analytics on our private equity portfolio company data to view changes in how PE firms invest in various industries over time. The graph below shows the historical investment trend for manufacturing portfolio companies by year.

Investments in manufacturing companies, as a share of the overall private equity investment pool, has decreased, but seems to have settled around 15 – 17%.

Private Equity Investment Trend: Manufacturing