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Private Equity Deal Flow
2011 PE Investment Above 2009 Lows Number of Deals Closed (red line) and Total Capital Invested by Year (blue bars)
Number of Deals Closed and Total Capital Invested by Quarter 2011: The Year of Two Halves Number of Deals Closed and Total Capital Invested by Quarter
Midwest Led PE Deal Flow with 360 Deals Percentage of Deal Volume (count) by Region
B2B and B2C Dominate PE Deal Activity Percentage of Deal Volume (count) by Industry
B2B and B2C Deal Flow Increased in 2011 Percentage of Deal Volume (count) by Industry
Capital Investment Continued Shift to IT, Healthcare & Energy Percentage of Deal Volume (capital) by Industry
Deals Under $250M Accounted for 75% of Deal Flow Percentage of Deal Volume (count) by Deal Size Range
Large Deals Attracted More Capital Investment Percentage of Deal Volume (capital) by Deal Size Range
Add-ons Continue to Sweeten Deals Add-on Deals as Percentage of Buyout Deals
Median Buyout Size Hit New Record Median Capital Invested in U.S. PE Transactions
Still Low Leverage in the Middle Market Percentage of Debt Used in Buyouts
Buyout Multiples Finished Close to 2008 High EBITDA Multiples of Buyout Transactions
Private Equity Exits
Private Equity Exits on Par with 2010 Annual PE Exits by Corporate Acquisition, IPO and Secondary Sale
Exit Strategies Consistent with Long Term Averages Percentage of P. E Exit Strategies Consistent with Long Term Averages Percentage of P.E. Exit Volume (count) by Exit Type
Private Equity Investors Exited $108B of Investments Quarterly PE Exits by Corporate Acquisition, IPO and Secondary Sale
Corporate Acquisitions Dominated Exits Median Exit Size ($M)
PE Exits Likely to Stay Strong in 2012 Number of U. S PE Exits Likely to Stay Strong in 2012 Number of U.S. Private Equity Company Inventory by Deal Year
Inventory Buildup Resulted in Increased Holding Length Median Time from Buyout to Exit
Private Equity Fundraising
Company Inventory & Capital Overhang Stall Fundraising Number of Funds Closed and Total Capital Raised by Year
Fundraising Remained Flat Number of Funds Closed and Total Capital Raised by Quarter
Funds Under $1B Accounted for 39% of U. S Funds Under $1B Accounted for 39% of U.S. PE Fundraising Percentage of U.S. P.E. Funds (capital) by Fund Size
Middle Market Funds Dominate Fundraising Percentage of U. S. P. E Middle Market Funds Dominate Fundraising Percentage of U.S. P.E. Funds (count) by Fund Size
PE Investors Sitting on $425B of Dry Powder Capital Overhang of US PE Investors by Vintage Year
New GPs are Entering the Private Equity Industry Number of Funds Closed by Year
Funds are Closing Faster Average Time to Close U.S. PE Funds
Average 2011 Vintage Fund 13% Larger than 2010 Average Fund Size ($M)
Greater Private Equity Performance
PE Led in Average IRR For 7 Consecutive Vintages Average Fund IRR by Vintage Year and Fund Type
Fund Performances Bounced Back Median 1-Year Rolling Horizon IRR by Fund Type
Private Equity Outperforming in the Long Run Horizon IRR – Private Equity, Venture Capital and Public Index
Private Equity Performance
Larger Funds Lead Returns Across Vintages Private Equity Average Fund IRR by Vintage Year
Larger Funds Recently Yielded Higher Returns Private Equity Horizon IRR by Fund Size
Recent PE Funds Hit Positive IRR in 2010 Median IRR by Years Since First Investment
LPs Waiting for Distribution for 2003 & Younger Funds Average Private Equity Return Multiples by Vintage Year
Dramatic Quartile Differences Private Equity IRR Quartiles by Vintage Year Top Quartile 3rd Quartile 2nd Quartile BottomQuartile Source:PitchBook
Matured Funds Called 92% of Committed Capital Private Equity Capital Call
Venture Capital Performance
Mid-Sized VC Funds Showed Growth Trend Venture Capital Average Fund IRR by Vintage Year
$150M-$250M Funds Generated 2nd Highest Returns Venture Capital Horizon IRR by Fund Size
Economy Impacted Returns More than Fund Age Median IRR by Years Since First Investment
TVPI Shows Improvement, DPI Remains Low Average Venture Capital Return Multiples by Vintage Year
VC Funds in Upper Quartiles Show Positive Returns Venture Capital IRR Quartiles by Vintage Top Quartile 3rd Quartile 2nd Quartile Bottom Quartile
High % of Committed Capital for New Investments Venture Capital Call
Fund of Funds Performance
Fund of Funds Delivered Returns Across Vintages Fund of Funds IRR Quartiles by Vintage Top Quartile 3rd Quartile 2nd Quartile Bottom Quartile
Fund of Funds Slower to Distribute Capital Average Fund of Funds Return Multiples by Vintage Year
Mezzanine Performance
Strong and Consistent Performance Across Vintages Mezzanine IRR Quartiles by Vintage Top Quartile 3rd Quartile 2nd Quartile Bottom Quartile
Mezzanine Funds Fastest in Distribution of Capital Average Fund of Funds Return Multiples by Vintage Year
Real Estate Performance
Top Quartiles Show Slow Recovery Real Estate IRR Quartiles by Vintage Top Quartile 3rd Quartile 2nd Quartile Bottom Quartile
2004 – 2008 Funds Still Recovering Average Real Estate Return Multiples by Vintage Year
Non-U.S. Investor Performance
PE Vintages Under 2004 Perform Closely to U.S. Counterparts Average Non-U.S. PE Return Multiples by Vintage Year
VC 2001-2004 Vintages Perform Better than U.S. Counterparts Average Non-U.S. VC Return Multiples by Vintage Year
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