Private Equity Activity Moderates in Q2-2016
After a slowdown last quarter, the industry ramped up exit activity in Q2-2016. Investment volume held at $146
billion, a slight decrease but on par with investment in the past two quarters. Fundraising volume fell to $49 billion,
but remained at its second highest Q2 level in the past decade. Exit volumes rebounded to strong levels in Q2, rising
by about $16 billion. Some key metrics of the private equity industry in Q2-2016 are:
P
U.S. PE INVESTMENT NEARLY LEVELS
U.S. private equity investment volume fell slightly from $156 billion in
Q1-2016 to $146 billion in Q2-2016.
P
-7%
45%
-4%
$49 B
-16%
$518 B
+4%
$83 B
+25%
DRY POWDER CONTINUES TO GROW
Callable capital reserves (“dry powder”) of global buyout funds rose
from $496 billion in March 2016 to $518 billion in June 2016.
P
$146 B
U.S. FUNDRAISING DECREASES
U.S. private equity fundraising volume decreased from $59 billion in
Q1-2016 to $49 billion in Q2-2016.
P
Quarterly
Change %
EQUITY CONTRIBUTIONS FALL
Total equity financing for U.S. leveraged buyouts fell to 45% in Q22016.
P
Current Level
EXIT VOLUMES PICK UP
U.S. private equity exit volume rose from $67 billion in Q1-2016 to $83
billion in Q2-2016
Note: Figures in this report are rounded. Percentage change calculations are based on actual figures and then rounded.
Fig 1 U.S. private equity investment volume fell to $146 billion.
Source: PitchBook
Fig 2 The proportion of equity financing for U.S. leveraged buyouts decreased to 45% from Q1-2016.
Source: Standard and Poor’s Capital IQ Leveraged Commentary & Data
Fig 3 Capital raised by U.S. private equity funds fell from the previous quarter to $49 billion.
Source: PitchBook
Fig 4 Global callable capital reserves (“dry powder”) of buyout funds increased to $518 billion as of June 2016.
Source: Preqin
Fig 5 U.S. private equity exit volume increased from the previous quarter to $83 billion.
Source: PitchBook