After a slow first quarter of 2015, the private equity industry experienced a revitalization in Q2-2015. Investment dipped by less than 1 percent to $112 billion, holding strong at the second highest Q2 level since 2007, fundraising fell to $30 billion. . Meanwhile, as ValueWalk details, exit volume exploded last quarter to $125 billion – the highest level on record – raising the question: “if everything is so awesome, why the smartest people in the room selling to the public at the heaviest pace ever?”
Some key metrics of the private equity industry in the second quarter of 2015 are:
U.S. Private Equity Investment Volume Decreases
Quarterly U.S. private equity investment deal volume fell slightly from $113 billion in Q1-2015 to $112 billion in Q2-2015.
Current Level – $112 B
Quarterly Change % – -1%
Equity Contributions Hold Steady
Total equity financing for U.S. leveraged buyouts remained at 42% in Q2-2015.
Current Level – 42%
Quarterly Change % – 0%
U.S. Fundraising Levels Fall
Quarterly U.S. private equity fundraising volume declined from $38 billion in Q1-2015 to $30 billion in Q2-2015.
Current Level – $30 B
Quarterly Change % – -21%
Dry Powder Increases
Callable capital reserves (“dry powder”) of global buyout funds increased from $431 billion in December 2014 to $467 billion as of the end of June 2015.
Current Level – $467 B
Quarterly Change % – +8%
Exit Volume Jumps
U.S. private equity exit volume grew from $70 billion in Q1-2015 to $125 billion in Q2-2015.
Current Level – $125 B
Quarterly Change % – +80%
Fig 1 The four-quarter average for exits took a sharp turn upwards in 2015-Q2, while the average for investments and fundraising decreased.
Fig 2 U.S. private equity investment volume contracted by 1% from the previous quarter.
Fig 3 The proportion of equity financing for U.S. leveraged buyouts remained at 42%.
Fig 4 Capital raised by U.S. private equity funds