Private Equity. Industry Investment Report 2015-Q2.

Transcription

1 Private Equity Industry Investment Report 2015-Q2

2 2 Table of Contents Page Executive Summary 3 Business Products & Services 5 Consumer Products & Services 6 Information Technology 7 Financial Services 8 Healthcare 9 Materials & Resources 10 Energy 11

3 3 Executive Summary In the second quarter of 2015, Business Products & Services and Consumer Products and Services were the top industries receiving private equity investment. Investment in four industries grew (Business Products & Services, Information Technology, Healthcare, and Energy), while Consumer Products & Services, Financial Services, and Materials & Resources saw declines in investment. Investment in Business Products & Services (B2B) remained steady from Q1, but the trend suggests lower investment levels in 2015 than in Volume ticked up to $37 billion while deals dropped slightly. The buyout of Indiana Toll Road Concession Company for $5.7 billion dominated acquisitions in Q2. Consumer Products and Services (B2C) investment dropped by $4 billion to $33 billion from last quarter. The largest deal included Life Time Fitness, valued at $4.1 billion. Consumer spending is expected to increase and stabilize later this year, which may make this sector more attractive to private equity investors. Private equity funds also put more capital into Information Technology (IT) companies in Q2. IT, which experienced steady investment over the past year, saw volumes increase from $14 billion in Q1 to $17 billion in Q2. Major deals include Riverbed Technology ($3.6 billion) and Blue Coat Systems ($2.4 billion). After a significant drop since Q1 2014, investment in Healthcare companies saw a small upturn of $2 billion in Q1 to $9 billion in Q2. Volume levels and the number of deals still remain at historical averages. Investment in both Financial Services and Materials & Resources dropped $1 billion and sit near the lowest levels since Top deals in both of these industries during Q2 were valued less than $1 billion. Finally, the volume of private equity investment in Energy experienced a slight bump, with larger increases in the number of deals suggesting that firms are targeting smaller investments. Projections in the energy sector are uncertain as energy prices remain volatile. Similarly, fundraising dropped by one-third from $12.8 billion in Q to $8.2 in Q

4 2015-H1 Industry Investment Totals 4

5 5 Business Products & Services (B2B) Indiana Toll Road Concession Company 5/28/15 $5.7 IFM Investors Air Medical Group Holdings 4/28/15 $2.1 Kohlberg Kravis Roberts WASH Multifamily Laundry Systems 4/13/15 $1.0 EQT Partners

6 6 Consumer Products & Services (B2C) Life Time Fitness 6/4/15 $4.1 Leonard Green & Partners, LNK Partners, TPG Capital Great Wolf Resorts 5/12/15 $1.4 Centerbridge Partners Driven Brands 4/17/15 $0.6 Roark Capital Group

7 7 Information Technology Riverbed Technology 4/24/15 $3.6 Elliott Management, Ontario Teachers' Pension Plan, Thoma Bravo Blue Coat Systems 5/26/15 $2.4 Bain Capital Cadillac Jack 6/1/15 $0.4 American Gaming Systems, Apollo Global Management

8 8 Financial Services American Beacon Advisors 4/30/15 $0.7 Estancia Capital Management, Kelso & Co. Drawbridge Realty 6/19/15 $0.4 Kohlberg Kravis Roberts Preston Hollow Capital 6/1/15 $0.4 Stone Point Capital

9 9 Healthcare Air Medical Group Holdings 4/28/15 $2.1 Kohlberg Kravis Roberts Paradigm Management Services 6/2/15 $0.5 Summit Partners VetCor Professional Practices 4/20/15 $0.5 Cressey & Company, Harvest Partners

10 10 Materials & Resources Zep 6/26/15 $0.7 New Mountain Capital Infiltrator Water Technologies 5/28/15 $0.5 Ontario Teachers' Pension Plan Reichhold 4/2/15 $0.1 Black Diamond Capital Management, JP Morgan Chase & Co., Simplon Partners, Third Avenue Management

11 11 Energy Petroleum Products Corporation 4/14/15 $1.2 ArcLight Capital Partners Bayonne Energy Center 4/1/15 $0.7 Macquarie Funds Group Luxe Energy 5/4/15 $0.5 Natural Gas Partners

12 12 Energy (Fundraising)