Q1 Private Equity: Calm Before the Storm or Indications of a Slowdown?

April 12, 2013 15:49 by Clayton Reeves in M&A  //  Tags:   //   Comments (0)

After an the exclamation point to 2012 that was the fourth quarter, there is sometimes a need to take in a deep breath; that is exactly what happened in private equity ("PE") markets during February and March of Q1 2013.  After momentum from the end of 2012 carried through January, a huge drop off in deal volume and transaction total occurred in February and March.  With only $52 billion spread across 355 deals in the U.S., Q1 represented the lowest quarterly numbers since 2009.  Exit activity in Q1 was even more sluggish than deal-making, as volume and capital exited spiraled down 67% and 81%.

 

 

Is this a cause for alarm?  Right now, the panic button should remain untouched.  With how good Q4 was, a dropoff was expected; as you can see from the chart below, Dec and Jan were incredibly busy months for PE.  Furthermore, their remains substantial expiring dry powder, cheap availability of debt and a willingness to do deals that could help regain momentum through the end of the year.

 

 

To see the entire report, visit Pitchbook.com here.

Past Posts

Widget Category list not found.

Index was outside the bounds of the array.X