November 21, 2012

PEGCC Releases Q3 Private Equity Index

Bailey: “Private equity investment topped $59 billion for the quarter- showing consistent pace of investment and the industry’s place as a driving force for economic activity.”

The Private Equity Growth Capital Council’s Private Equity Index (PE Index), which measures overall private equity activity in the U.S., declined 12 percent to 91.8 during the third quarter this year. The drop is due in large part to a decrease in exit volume, as well as slight declines in investment and fundraising volumes. Although the Index fell below its ten-year moving average, it remains above levels seen in late 2008 and early 2009.

“The Q3 PE Index results are consistent with the past few quarters, which have remained close to the 10-year moving average,” said Bronwyn Bailey, PEGCC Vice President of Research. “Private equity investment topped $59 billion for the quarter- showing consistent pace of investment and the industry’s place as a driving force for economic activity.”

Key findings about the private equity activity in the third quarter of 2012 include:

- Quarterly U.S. private equity investment deal volume fell from $66 billion in the second quarter of 2012 to $59 billion in the third quarter.

- Average equity contributions fell two percent, from 37 percent in 2012-Q2 to 36 percent in Q3.

- Fundraising volume fell from $39 billion in the second quarter to $35 billion in Q3.

- Exit volume fell from $29 billion in the second quarter to $21 billion in the third.

The full report can be found here