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Q3 2017 Summary - Private Equity Review & Outlook


  • After robust fundraising throughout the first half, activity took a breather. Despite a decline in volume during the third quarter, 2017 fundraising was on course to building on the strong levels experienced over recent years. The US buyout market was the bright spot, recording the close of the largest-ever buyout fund.
  • The buyout investment pace remained steady. Invested capital varied across regions, with large-cap buyouts in Europe and Asia-Pacific driving the surge in deal volume. In the US, investment volume was down as investment activity was dominated by add-on acquisitions of small and mid-cap companies.
  • A recovery in M&A markets and robust stock and debt markets spurred gains in PE-backed exit volume in the US market. PE-backed exit volume declined in Europe due to subdued exit activity through public markets, although exits to trade and financial buyers showed signs of improvement.
  • After a moderate 2016, the US and European venture investment volume continued to trend upwards as investors put more money to work in fewer deals. Exit volume trailed the robust 2016 levels due to a slowdown in M&A exits and quiet VC-backed IPO activity during the third quarter.

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