Private equity deal flow has declined from the fourth quarter of 2011, says a new report by PitchBook. (BVR's partner on the PitchBook/BVR Guideline Public Company Comps Tool). In the first quarter 2012, there were 321 completed deals totaling $55 billion in invested capital. Other trends that emerged during the 1Q 2012, according to PE Breakdown Report: 2Q 2012 Edition, were:
- Despite declines in PE investment, exit activity remained strong with 112 companies sold or taken public for a total of $21 billion.
- Deals under $500 million represented 95% of investment activity.
- The IT industry continues to increase its share of private equity activity. In the first quarter of 2012, the IT industry was responsible for $10.8 billion in invested capital.
- PE fundraising remained steady from the second half of 2011, with 26 funds closing on a total of $20 billion of committed capital.
- PE exits will likely be a major conduit for activity for the remainder of 2012, which will be critical in the reduction of the record 6,087 portfolio companies still being held.
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