Private Equity Poised For U.S. Investments
Fundraising Surges As PE Firms Grow Their Capital Reserves During First Quarter
WASHINGTON – Private equity fundraising volume jumped 88 percent in Q1 2017, rising to $64 billion from $34 billion in the previous quarter, according to the American Investment Council’s (AIC) 2017 Q1 Private Equity Trends Report, released today.
The report shows growth in four out of five key metrics. In addition to fundraising, Q1 2017 saw levels of callable capital reserves rise to $540 billion as of April 2017, and exits increased 8 percent to $84 billion since Q4 2016.
“Private equity’s spike in fundraising and large reserves of dry powder position the industry for healthy deal flow this year and underscore the confidence investment partners have in the asset class,” said AIC President and CEO Mike Sommers.
The 2017 Q1 Private Equity Trends Report also shows total equity financing for leveraged buyouts rose slightly to 41 percent, demonstrating more contributions from funds to company acquisitions.
“With $64 billion worth of capital raised and continued growth in capital reserves, private equity funds are poised to make substantial long-term investment in U.S. businesses,” said Bronwyn Bailey, AIC Vice President of Research and Investor Relations.
Below are key findings from the report. Read the full report here.
- U.S. PE Investment Volume Drops: U.S. private equity investment volume dropped from $140 billion in Q4 2016 to $124 billion in Q1 2017.
- Equity Contributions Rose Slightly: Total equity financing for leveraged buyouts rose to 41 percent in Q1 2017 from 40 percent in Q4 2016.
- U.S. Fundraising Rises: U.S. private equity fundraising volume jumped 88 percent, from $34 billion to $64 billion in Q1 2017.
- Dry Powder Remains Steady: Callable capital reserves (“dry powder”) of global buyout funds rose from $534 billion in December 2016 to $540 billion in April 2017.
- Exit Volumes Increased: U.S. private equity exit volume rose from $78 billion to $84 billion in Q1 2017.
About the American Investment Council
The American Investment Council (AIC) is an advocacy and resource organization established to develop and provide information about the private investment industry and its contributions to the long-term growth of the U.S. economy and retirement security of American workers. Member firms of the AIC consist of the country’s leading private equity and growth capital firms united by their successful partnerships with limited partners and American businesses. More information about the AIC can be found at www.investmentcouncil.org.
