PitchBook, the Private Equity data and information provider, has released it’s quarterly analysis of deals leading into Q4 2008. A couple of quick observations: interesting to note that how balanced the percent of private equity investment (total $ amount) was in ’02, ’03, and ’04 before becoming amazingly top heavy in ’07 with 65% of the total amount coming from large cap deals. It seems from the data that we’re experiencing a return to normalcy…or at least 2005! For the first three quarters of 2008, there’s been a 33% drop in the number of deals made (from 1,936 to 1,302) from the same time frame one year earlier. The amount of capital invested declined 57% from $354.5 billion to $152.3 billion. A marked decrease, but still the sixth highest total on record. Again, perhaps it’s 2005 all over again (might make all those hirings last year at big firms not look so smart now). Also, what’s not changing is the trend for the size of funds being raised to keep getting larger and larger.
Pitchbook’s Q4 2008 Private Equity Breakdown