INSIGHT

Q1-2019 Private Equity Industry Update

2018 proved to be one of the most active years in private equity history with near record numbers in deal volume and capital investment. 2019 however, has shown decreasing trends with a below average Q1 for both deal volume and capital invested. Total fundraising for Q1 is also off to a slow start with just $91 million raised and 107 funds closed. In contrast, growth equity funds are experiencing their strongest fundraising Q1 since 2008. Adding to this, the 10 largest funds in the market are seeking large capital raises with about $126 billion between them. This indicates that deal activity might be poised to pick up despite a slow quarter.​

Analysts believe that some possible explanations for the slow start to the year include uncertainty regarding global trade disputes, the U.S. government shut down, and volatility in the equities market. Q1 2019 capital investment is down 34% from Q1 2018, and down 38% in deal volume. Nonetheless, future outlook remains bullish as Q1 investments were significantly low just following a massive fundraising year. As a result, Provident estimates that a substantial amount of dry powder still remains to be deployed, which may drive M&A activity and consolidation in the coming quarters.​

To print and download the full Private Equity Industry Update report, please click below…

 

Sources: SEC Filings; Company Press Releases, and Reports; IBISWorld; Capital IQ; PHP Estimates and Research. This document has been compiled with publicly available information. Provident Healthcare Partners, LLC makes no guarantee of its accuracy or completeness. No data or statement should be construed to be a recommendation for the purchase, sale, or retention of any security.
  • “While the decision to sell our business was a difficult one, Provident vigilantly represented and protected our best interests throughout the transaction.  Provident was the right choice for Cascade and I would recommend their services to anyone.”

  • “A lot of investment bankers were interviewed, Provident was chosen. Provident delivered. My clients could not be happier.”

  • “Provident listened to our story, confirmed that our business was valuable and made us feel like this was the only transaction important to them.”

  • “Provident’s depth of experience and practical business savvy was demonstrated in their ability to cut through what sometimes looked like impasse.”

  • ”I have a tremendous amount of appreciation and gratitude to the Provident team for their hard work and diligence throughout this process. Each and every member of the Provident team is excellent at their jobs and it has been a pleasure working with such a professional team. Provident has provided outstanding guidance and counsel, and this deal could never have gotten done without Provident’s leadership.”

  • “After working with Provident on several transactions, it is evident that their extensive industry knowledge and deal expertise prove to be invaluable to their clients.”

  • “We would not have been successful navigating the process without Provident’s hard work and active participation. They exceeded our expectations and we would highly recommend them to any health care company seeking a knowledgeable and engaged investment banking firm.”