8/14/2019 Pitchbook Private Equity Breakdown 4Q 2009
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Breakdown 4Q 2009
Total Private Equity Deal Flow
Deal volume is beginning to stabilize as investors search for undervalued opportunies.The number of deals in 3Q 2009 declined 6.1% from 214 in 2Q 2009.The capital invested in 3Q 2009 declined 42% from $12 billion in 2Q 2009.
PitchBook Data, a private equity-focused research firm, has published a comprehensive set of stascs analyzing
United States private equity investment acvity through the first three quarters of 2009. Year to date, there have been
654 private equity deals and $33 billion in disclosed deal amounts, a figure that is roughly 60% less than the 1,532
deals closed in the first three quarters of 2008. The most recent quarter saw not only fewer deals done -- 201 were
closed -- but also much smaller deals in size, totaling just $7 billion in disclosed deal amounts. These results connue
the downward trend iniated almost 2 years ago.
While investment acvity connues at a significantly slower pace, the decline appears to be leveling off, indicang
that the boom may have been aained or is near. A number of other factors, including an increase in newly
announced deals and a steady rise in the median deal amount over the last year, provide posive indicaons that a
change in direcon may be occurring.
The Private Equity
Source: PitchBook
8/14/2019 Pitchbook Private Equity Breakdown 4Q 2009
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Business Products & Services (B2B) represented the largest poron of
deal flow (31%) as investors shied their aenon away from
Consumer Products & Services (B2C) (25%), which ed B2B through
1H09 with 28%. Energy and Informaon Technology held steady during
the quarter aer declining significantly at the end of 2008. Healthcare
and Energy were the only industries to see increases in the number of
deals closed over last quarter.
Investment acvity connued to be fairly evenly dispersed throughout
the United States. The South saw the most disnct increase in private
equity acvity during the third quarter of 2009, rising 38% from 2008
to represent 11% of deal flow.
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PE Transactions (Count)
by Industry Sector Through 3Q 2009PE Transactions (Count)
by Region Through 3Q 2009
Percent of PE Transactions
(Count) by Deal Size
Lower middle-market and growth equity deals under $50 millionremained the most popular during the third quarter of 2009
(approximately 60% of deal flow). However, in what may be a promising
sign, acvity in the two classificaons above it made significant gains
over the second quarter of 2009 (not shown on chart).
Deals over $2.5 billion connue to decline as investors shi their focusto middle and lower middle-market deals where all-equity transacons
are more prevalent and financing is slightly easier to obtain. Deals from
$500 million to $1 billion and $50 million to $250 million have grown in
popularity as investors pursue add-ons to strengthen their current
plaorm companies.
Percent of PE Investment
(Total $ Amount) by Deal Size
Source: PitchBook
*
Source: PitchBo
Source: PitchBook Source: Pitch
Source: PitchBook
Source: PitchBook
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Median deal size increased to pre-recession levels as investors shied their
focus back toward the middle and upper-middle markets. This trend will be
tested as private equity acvity increases in the coming quarters.
The median deal size for both Buyout and All Other categories made
significant gains over the same numbers from last quarter. The median Buyou
moved from $37 million at the end of the second quarter to $54 million.
Similarly, All Other deals moved from $18 million to $35 million over the sam
period. (1H09 numbers from 3Q 2009 Breakdown)
Distressed invesng as a percentage of the total private equity deal flow has been increasing steadily since the beginning of the year.Year to date, PE firms have acquired over 25 bankrupt companies, invesng above $3.2 billion. Addionally, there are 16 similar deals
announced this year that have yet to close. Distressed companies come with their challenges, but represent an aracve investmentopportunity for PE firms because of their relavely low price, and cleaner post-bankruptcy balance sheets. The number of buyouts ofbankrupt companies will most likely connue to rise as more companies run into trouble and private equity firms become more comfort-able with distressed invesng.
Distressed Companies Find A place in Private Equity
Median Deal Amount by Year Median Deal Amount by Deal Type
Source: PitchBook
*
Source: PitchBookSource: PitchBook
Buyouts of Companies in Chapter 11 and % of Total Deal Flow
8/14/2019 Pitchbook Private Equity Breakdown 4Q 2009
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Private Equity: Data | News | Analysis
The number of funds raised year to date declined 57%
compared to 143 funds closed through 3Q 2008.
Total capital raised year to date declined 60% compared to
the $254 billion raised through 3Q 2008.
Funds closed above $500 million received over 90% of all capital
commied in 3Q 2009.
No funds over $5 billion were closed during 3Q 2009.
Fewer new commitments for mega-funds are ancipated as limited
partners shi their sights toward middle-market funds where deals are
sll being done.
Fundraising Activity
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The majority of new funds fall between $500 million and $5 billion. Howthe low number of addions means that there is no appreciable changedistribuon of closed funds year to date in 2009.
The State of Private Equity Fundraising
PitchBooks aggregated data and stascs for US private equity fundraising in the first three quarters of 2009 show that 61 funds wereclosed, raising over $98 billion for private equity investment. The third quarter of 2009 saw 11 funds closed for a total of $14.43 billion,versus 19 funds closed for a total of $28 billion during the second quarter of 2009. Funds over $500 million led fundraising acvity in the
third quarter, represenng 90% of funds closed during the quarter and over $14 billion in total.
While fundraising has slowed compared to the breakneck pace of the last two years, moves by LPs such as CalPERS, CalSTRS andPennsylvania SERS to increase their allocaons to private equity are a posive sign for fundraisers in the near term. Look for the rate offundraising to connue its modest pace as investors decide how best to ulize the almost $400 billion in unspent capital amassed over theprevious two years (as reported by PitchBook in June 2009).
Largest Funds Closed Through 3Q 2009
FirmApollo Investment Management
The Carlyle Group
First Reserve
The Carlyle Group/Riverstone
Lindsay GoldbergThe Blackstone Group
TA Associates
Welsh, Carson, Anderson & Stowe
TCW/Crescent Mezzanine
Quantum Energy Partners
Walton Street Capital
Charlesbank Capital Partners
Odyssey Investment Partners
Pine Brook Road Partners
The Riverside Company
Providence Equity Partners
Great Hill Partners
Oak Hill Capital PartnersHuntsman Gay Global Capital
The Carlyle Group
1
1
4
FundApollo Investment Fund VII
Carlyle Partners V
First Reserve Fund XII
Carlyle/Riverstone Global En & Pwr Fund IV
Lindsay Goldberg IIIBlackstone Real Estate Partners Europe III
TA XI
WCAS XI
TCW/Crescent Mezzanine Partners V
Quantum Energy Partners V
Walton Street Real Estate Fund VI
Charlesbank Equity Fund VII
Odyssey Investment Partners Fund IV
Pine Capital Partners
Riverside Capital Appreciaon Fund V
Providence TMT Special Situaons Fund
Great Hill Equity Partners IV
OHA Strategic Credit FundHuntsman Gay Capital Partners Fund
Carlyle Asia Growth Partners IV
Size
Source: PitchBook Plaorm
See PitchBooks US PE Capital Overhang Rep
PitchBook Library: www.pitchbook.com/2Q_
Fund Count by Fund SizeCapital R aised by Fund Size
*
Source: PitchBook
Source: PitchBook Source: Pitch
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By Number of Investments
Most Active Private Equity InvestorsThrough 3Q 2009
Source: PitchBook
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Investor Name
Parthenon Capital
Oaktree Capital Management
Planum Equity
Thoma Bravo
Angelo Gordon & Company
Kohlberg Kravis Roberts
Marlin Equity Partners
Sun Capital Partners
The Carlyle Group
The Riverside Company
Warburg Pincus
Bain CapitalGolden Gate Capital
Hart Capital
J.F. Lehman & Company
Milestone Partners
Stonington Partners
Summit Partners
The Blackstone Group
Welsh, Carson, Anderson & Stowe
Advent Internaonal
American Capital
Apollo Investment Management
Banc of America Capital Investors
Baery VenturesCatalyst Investors
Clearview Capital
Cortec Group
General Atlanc
GTCR Golder Rauner
H.I.G. Capital
Hellman & Friedman
KPS Capital Partners
Pegasus Capital Advisors
Perseus
Pfingsten Partners
Providence Equity Partners
Riverside PartnersRoundTable Healthcare Partners
Sterling Partners
Stockwell Capital
Veronis Suhler Stevenson
Wayzata Investment Partners
Source: PitchBook
Deal Count
11
7
7
7
6
6
6
6
6
6
6
55
5
5
5
5
5
5
5
4
4
4
4
44
4
4
4
4
4
4
4
4
4
4
4
44
4
4
4
4
2 by number of advisory roles in transacons
Top Investment Banks & Advisors2
Houlihan Lokey Howard & Zukin
Goldman Sachs
William Blair & Company
Harris Williams
Morgan Stanley
Piper Jaffray
Lazard Middle Market
Alvarez & Marsal Holdings
Montgomery & Company
3 by number of financings provided
Top Lenders in Private Equity3
Bank of America
CIT Group
Wells Fargo
GE Capital
U.S. Bancorp
TriState Capital Bank
PNC Financial Services Group
Babson Capital Partners
Wells Fargo FoothillFih Third Bank
JP Morgan
Madison Capital Funding
1 by counsel provided on transacons
Top Law Firms in Private Equity1
Jones Day
Kirkland & Ellis
Latham & Watkins
Shearman & Sterling
Skadden, Arps, Slate, Meagher & Flom
Sullivan & Cromwell
Wilson Sonsini Goodrich & Rosa
Willkie Farr & Gallagher
Morgan, Lewis & Bockius
Blank Rome
DLA Piper Rudnick Gray Cary
Most Active Private Equity ServiceProviders Through 3Q 2009
By Number of Deals Serviced
8/14/2019 Pitchbook Private Equity Breakdown 4Q 2009
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Private Equity: Data | News | Analysis
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limited partners, inancial sponsors & investors, target companies, service
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