2Q 2013Private Equity Breakdown
Presentation Slide Deck
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Source:PitchBook
Coming off the heels of a record-breaking quarter, deal-making dropped significantly in 1Q 2013.
Source:PitchBook
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2008 2009 2010 2011 2012 2013
$0
$20
$40
$60
$80
$100
$120
$140
0
100
200
300
400
500
600
700
800
$120 $73 $114 $46 $49 $25 $28 $52 $72 $84 $70 $127 $88 $82 $92 $102 $70 $77 $72 $126 $52
761
545
613
417373
347332419
492458451
633
526546
538555500471451
564
355
Capital Invested ($B)
Following a Record-Breaking 4Q 2012, Deal-Making Stalled in 1Q 2013
U.S. P.E. Deal Flow by Quarter
Source:PitchBook
Jul Aug Sep Oct Nov Dec Jan Feb Mar2012 2013
$0
$10
$20
$30
$40
$50
$60
0
50
100
150
200
250
300
$32 $20 $20 $28 $48 $50 $24 $19 $9
161 153137
153
129
282
206
83
66
Capital Invested ($B) # of Deals Closed
Heightened Activity in December and January Resulted
in a Slowdown in February and MarchU.S. P.E. Deal Flow by Month
Source:PitchBook
2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%
10%20%30%40%50%60%70%80%90%
100%
Buyout/LBO Add-on Recap PE Growth/Expansion PIPE * As of 3/31/2013
*
Over the Last Decade, Buyouts Have Decreased as a Proportion of PE Deals
Investments (count) by Deal Type
Source:PitchBook
2004 2005 2006 2007 2008 2009 2010 2011 2012 20130
500
1,000
1,500
2,000
2,500
3,000
0%
10%
20%
30%
40%
50%
60%
499 686 8641110
786491 690 809 736
126
8871030
1260
1415
997
543
828857 810
119
36%40% 41%
44% 44%47% 45%
49% 48%51%
Add-on Non Add-on Add-On % of Buyout * As of 3/31/2013
*
Add-ons Have Increased from 36% to 51% of Buyout Activity Since 2004
Add-ons as a Percentage of Buyout Activity
Source:PitchBook
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2007 2008 2009 2010 2011 2012 2013
$0
$50
$100
$150
$200
$250
$67
$40$15
$28
$69$50
$30
$83
$63
$168
$106
$70 $73
$180
$76
$149
$54
$200
$144
All PE Deals Buyouts (excluding add-ons)
The Median Deal Size Dipped in 1Q 2013 Following a Surge of Large Transactions in 4Q
2012Median Deal Size ($M)
Source:PitchBook
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2010 2011 2012 2013
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$2.5B+
$1B-$2.5B
$500M-$1B
$100M-$500M
$25M-$100M
Under $25M
There Were Only 3 Billion-Dollar Deals in 1Q 2013,
the Lowest Total Since 1Q 2010Investments (count) by Deal Size
Source:PitchBook
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q2010 2011 2012 2013
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$2.5B+
$1B-$2.5B
$500M-$1B
$100M-$500M
$25M-$250M
Under $25M
PE Firms Refocused Their Attention on the Middle Market in 1Q 2013Investments (amount) by Deal Size
Source:PitchBook
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2010 2011 2012 2013
-
100
200
300
400
500
600
700
B2B
B2C
Energy
Financial Services
Healthcare
IT
Materials & Resources
With the Weak Performance in 1Q 2013, Deal Flow Fell in Every Industry
Deal (count) by Industry
Source:PitchBook
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2010 2011 2012 2013
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
B2B
B2C
Energy
Financial Services
Healthcare
IT
Materials & Resources
The B2C Industry Jumped from 21% of Capital Invested
in 4Q 2012 to 36% in 1Q 2013Deals (amount) by Industry
Source:PitchBook
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2010 2011 2012 2013
0%10%20%30%40%50%60%70%80%90%
100%
West Coast
Southeast
South
Great Lakes
New Eng-land
Mountain
Midwest
Mid-Atlantic
The Mid-Atlantic was the Most Active Region for Investment in 1Q 2013
Deals (count) by Region
Source:PitchBook
Deal-Making Expanded in Only 9 States in 1Q 2013
Deals (count) by State
Source:PitchBook
Exit activity plummeted in 1Q 2013, hitting its lowest level since 3Q 2009.
Source:PitchBook
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2008 2009 2010 2011 2012 2013
$0
$10
$20
$30
$40
$50
$60
0
50
100
150
200
250
$20$17$36 $5 $13 $4 $7 $17$17$25$25$42$22$35$27$34$27$30$25$57$11
119
87
117
58 48 54 45
7697 105109
181
99
137138155157
144
134
206
69
Capital Exited ($B)
Exit Activity was Even Worse Than Deal-Making, Hitting Its Lowest Level Since 2009
U.S. Exit Activity by Quarter
Source:PitchBook
Jul
Aug Se
p
Oct
Nov
Dec Jan
Feb
Mar
2012 2013
$0
$5
$10
$15
$20
$25
0
20
40
60
80
100
120
$8.6 $8.9 $7.1 $19.3 $17.9 $20.1 $2.4 $1.6 $7.3
5446
34
5746
103
36
14 19
Capital Exited ($B) # of Exits
Exits Also Saw a Spike 4Q 2012 Before a Slowdown in 1Q 2013U.S. Exit Activity by Month
Source:PitchBook
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q2010 2011 2012 2013
0%10%20%30%40%50%60%70%80%90%
100%
Corporate Acquisition IPO Secondary Buyout
Secondary Buyouts Continue to Play an Increasingly Important Role as an Exit Strategy
Exits (count) by Type
Source:PitchBook
Fundraising held steady in 1Q 2013 but is still well below pre-crisis levels.
Source:PitchBook
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2008 2009 2010 2011 2012 2013
$0
$10
$20
$30
$40
$50
$60
$70
$80
0
20
40
60
80
100
120
$63$70$59$30$69$35$10$26$17$13 $6 $10$43$18$15$14$20$42$19$27$23
107
4540
33
49
28
10
2638
2620
3140
27 25 29 3138
23
25 25
Capital Raised ($B)
Fundraising Held Steady in 1Q 2013U.S. Fundraising by Quarter
Source:PitchBook
2009
2010
2011
2012
2013
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Under $100M $100M-$250M $250M-$500M $500M-$1B $1B-$5B * As of 3/31/2013
*
Larger Funds Showed Promise in 1Q 2013, and Many More Should Close Later in the Year
Fundraising (count) by Fund Size
Source:PitchBook
1Q 2013 PE Deal League Tables
Source:PitchBook
Most Active PE Investors in 1Q 2013By Count of Closed U.S. PE Deals
Source:PitchBook
Most Active Law Firms in 1Q 2013By the Number of Closed U.S. PE Deals a Firm Provided Service On
Source:PitchBook
Most Active Lenders in 1Q 2013By the Number of Closed U.S. PE Deals a Firm Provided Service On
Source:PitchBook
Most Active Advisors in 1Q 2013By the Number of Closed U.S. PE Deals a Firm Provided Service On
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