Capital Dynamics logo

Research

Q3 2017 Summary - Private Equity Review & Outlook

Highlights

  • 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.

If you wish to continue reading, please request a copy of the report from info@capdyn.com.

 

Disclaimer: This document is provided for informational and/or educational purposes. The opinions expressed are as of December 2017 and may change as subsequent conditions vary. The information herein is not to be considered investment advice and is not intended to substitute for the exercise of professional judgment. Recipients are responsible for determining whether any investment, security or strategy is appropriate or suitable and acknowledge by receipt hereof that neither Capital Dynamics AG nor its affiliates (collectively, “Capital Dynamics”) has made any determination that any recommendation, investment, or strategy is suitable or appropriate for the Recipient’s investment objectives and financial situation. A reference to a particular investment or security by Capital Dynamics is not a recommendation to buy, sell or hold such investment or security, nor is it an offer to sell or a solicitation of an offer to buy such investment or security. Capital Dynamics may have a financial interest in investments or securities discussed herein or similar investments or securities sponsored by an asset management firm discussed herein. Certain information and opinions herein have been provided by a number of sources that Capital Dynamics considers to be reliable, but Capital Dynamics has not separately verified such information. Nothing contained herein shall constitute any representation or warranty and no responsibility or liability is accepted by Capital Dynamics as to the accuracy or completeness of any information supplied herein. Before relying on this information, Capital Dynamics advises the Recipient to perform independent verification of the data and conduct his own analysis hereto with appropriate advisors. Analyses contained herein are based on assumptions which if altered can change the conclusions reached herein. Capital Dynamics reserves the right to change its opinions or assumptions without notice. This document has been prepared and issued by Capital Dynamics and/or one of its affiliates. In the United Kingdom, this document is issued by Capital Dynamics Ltd., which is authorized and regulated by the Financial Services Authority. For residents of the UK, this report is only directed at persons who have professional experience in matters relating to investments or who are high net worth persons, as those terms are defined in the Financial Services and Markets Act 2000. In the EU, this document is issued to investors qualifying as professional investors (as that term is defined in the Alternative Investment Fund Managers Directive) by Capital Dynamics Limited (authorised and regulated by the Financial Conduct Authority). Registered office: 9th Floor, 9 Colmore Row, Birmingham, West Midlands, B3 2BJ, Company No. 02215798. In the United States, this document has been issued by Capital Dynamics Inc., an SEC-registered investment advisor. Redistribution or reproduction of this document is prohibited without written permission.