Private Equity Investment Report Shows Spike In Information Technology Investment During Third Quarter Of 2016
Q3 Industry Investment Report Sees Rise In Overall Investment Volume, Bodes Well For U.S. Economy
WASHINGTON, D.C – The American Investment Council (AIC) released its 2016 Q3 Industry Investment Report today, which highlights the investment activity of private equity firms in selected industries for the first three quarters of the year. The report also shows the quarter-by-quarter private equity investment and deal count for each industry specified as far back as 2005, providing context on the historical trend in each sector.
After a lackluster Q2, investment volumes surged for Information Technology deals, despite a decline in the number of deals of over 18 percent. Investment volumes during the quarter in all other industries either remained steady or dipped compared to Q2. Despite this decrease in some industries, overall investment volume rose in the third quarter (see AIC 2016-Q3 Trends Report). After Information Technology with $138 billion, the largest investment volumes went to Business Products & Services (B2B) and Consumer Products & Services, with $118 billion and $84 billion invested, respectively.
“The results of the Q3 Industry Investment Report show the range of industries that can benefit from sustained private equity investment as overall investment continues to grow,” said AIC President and CEO Mike Sommers. “From information technology to energy to healthcare, private equity plays an important role in the U.S. economy by helping businesses grow and create jobs.”
Several sectors analyzed in the report saw investment largely in line with historical averages, such as Consumer Products and Energy. The sharp increase in Information Technology investment during Q3, however, brought capital invested during a single quarter in the industry to its highest level in over 11 years. The number of deals executed declined from Q2 to Q3 in each industry except Energy, in which the deal count rose by more than nine percent.
“The jump in investment in the technology industry bodes well not only for the sector, but it also foretells how innovation will advance the U.S. economy,” said AIC Vice President of Research and Investor Relations Bronwyn Bailey. “Despite a slowdown in the number of deals made during the quarter, we are encouraged by the overall investment growth.”
Industries included in the report are as follows: Consumer Products and Services; Business Products and Services; Financial Services; Information and Technology; Healthcare; Energy; and Materials and Resources. Read the full report here.
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.
