PitchBook Releases Second Quarter 2009 Private Equity Investment Statistics
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NEW YORK (July 1, 2009) - PitchBook, a private equity-focused research firm, has published a comprehensive set of statistics analyzing private equity investment activity during the second quarter of 2009. The data shows private equity investors are continuing to wait for the investment climate to improve before putting their $400 billion of dry powder to work.
"PitchBook's analysis shows that the private equity industry is currently shifting gears in a return to its roots. More attention is being paid to middle-market deals using a healthier amount of equity where private equity's operational and financial expertise can make a big difference." John Gabbert, CEO & Founder of PitchBook
- The first half of 2009 was the slowest six-month investment period since 2002 with 407 completed investments, only 174 of which were completed in the second quarter. However, another 44 deals, totaling $6.5 billion were announced during the quarter but have yet to close.
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In response to the current credit markets private equity investors have been using less leverage and targeting smaller operational improvement and distressed company investments. These lower and middle-market companies now account for 70% of all investments. PE firms are also strengthening their current portfolio companies through add-on acquisitions, which accounted for 43% of all buyouts in the first half of 2009.
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In Q2 2009 only the Business Products & Services and Information Technology industries were able to maintain their investment levels from the first quarter, with 54 and 29 deals respectively.
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The BankUnited Financial acquisition was the largest of the quarter and accounted for over 25% of the total invested capital for the quarter.
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The decrease in private equity investment is not due to a lack of available capital, which remains at an all time high of $400 billion. PE investors continue to raise capital and currently have enough dry powder to more than support the combined deal activity of 2004, 2005 and 2006 with the use of moderate leverage.
To learn more about PitchBook and see the complete set of data, please call
(206) 357-8509 or visit www.pitchbook.com.
About PitchBook
PitchBook Data, Inc. is the only private equity-focused research firm that comprehensively covers the full private equity lifecycle. The flagship PitchBook Platform provides clients with unparalleled information and analysis on over 21,000 private equity deals, 8,300 investors/corporate acquirers, 3,300 professional service providers, 1,600 limited partners, and 92,000 industry professionals.
Contacts
Adley Bowden
206-357-8509
John Gabbert
206-357-8504
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