After a slow first quarter of 2015, the private equity industry experienced a revitalization in Q2-2015. Investment dipped by less than 1 percent to $112 billion, holding strong at the second highest Q2 level since 2007, fundraising fell to $30 billion. . Meanwhile, as ValueWalk details [5], exit volume exploded last quarter to $125 billion - the highest level on record - raising the question: "if everything is so awesome, why the smartest people in the room selling to the public at the heaviest pace ever?"
Via Valuewalk, [5]
Some key metrics of the private equity industry in the second quarter of 2015 are:
U.S. Private Equity Investment Volume Decreases
Quarterly U.S. private equity investment deal volume fell slightly from $113 billion in Q1-2015 to $112 billion in Q2-2015.
Current Level - $112 B
Quarterly Change % - -1%
Equity Contributions Hold Steady
Total equity financing for U.S. leveraged buyouts remained at 42% in Q2-2015.
Current Level - 42%
Quarterly Change % - 0%
U.S. Fundraising Levels Fall
Quarterly U.S. private equity fundraising volume declined from $38 billion in Q1-2015 to $30 billion in Q2-2015.
Current Level - $30 B
Quarterly Change % - -21%
Dry Powder Increases
Callable capital reserves (“dry powder”) of global buyout funds increased from $431 billion in December 2014 to $467 billion as of the end of June 2015.
Current Level - $467 B
Quarterly Change % - +8%
Exit Volume Jumps
U.S. private equity exit volume grew from $70 billion in Q1-2015 to $125 billion in Q2-2015.
Current Level - $125 B
Quarterly Change % - +80%
Fig 1 The four-quarter average for exits took a sharp turn upwards in 2015-Q2, while the average for investments and fundraising decreased.
[6]
Fig 2 U.S. private equity investment volume contracted by 1% from the previous quarter.
[7]
Fig 3 The proportion of equity financing for U.S. leveraged buyouts remained at 42%.
[8]
Fig 4 Capital raised by U.S. private equity funds declined from the previous quarter to $30 billion.
[9]
Fig 5 Global callable capital reserves (“dry powder”) of buyout funds increased to $467 billion as of June 2015.
[10]
Fig 6 U.S. private equity exit volume grew from previous quarter levels to $125 billion.
[11]
So - to summarize - funding levels are falling, dry powder is rising, and exit volume are at record highs... Still want to buy stocks with both hands and feet!!!!
