PE Index Shows Surge in Private Equity Activity for Q4 2012
During the same quarter that economic growth slowed in the United States, private equity expanded to a level not seen since before the financial crisis. The Private Equity Growth Capital Council’s Private Equity Index (PE Index), which measures overall private equity activity in the U.S., increased 23 percent to 123.9 during the fourth quarter of 2012. This is the index’s highest level since the third quarter of 2008.
“Private equity activity was a bright light in the United States economy during the fourth quarter, increasing investments in promising companies poised for growth and in need of a turnaround,” said Bronwyn Bailey, PEGCC Vice President of Research. “In the fourth quarter, economic activity receded, yet private equity investment topped $102 billion and returned more than $55 billion in the fourth quarter to its investors which include pension funds, charitable foundations and university endowments.”
Key findings about the private equity activity in the fourth quarter of 2012 include:
- Quarterly U.S. private equity investment deal volume increased from $66 billion in the third quarter of 2012 to $102 billion in the fourth quarter.
- Average equity contributions increased from 36 percent in the third quarter to 37 percent in the fourth quarter.
- Fundraising volume increased from $30 billion in the third quarter to $33 billion in the fourth quarter.
- Exit volume increased from $29 billion in the third quarter to $55 billion in the fourth quarter.
The full report can be found here.
