west coast data roundup -- buyouts west final version

8/14/2019 West Coast Data Roundup -- Buyouts West Final Version

1/15


2/15


3/15

US M&A Activity down nearly 40%; Private Equity-backedM&A declines 85% over 2007

0

100

200

300

400

500

600

700

1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

Volume($bil)

0%

5%

10%

15%

20%

25%

30%

35%

40%

%PrivateEquityAc

tivity

Strategic M&A

Private Equity M&A

Private Equity M&A as % of Total M&A


4/15

West Coast Buyout Investments up 18% over 2007;Number of West Coast Buyout Investments Decline

0

500

1000

1500

2000


Volume($bil)

0

20

40

60

80

100

120

140

160

180

NumberofDeals

Buyout Investments by West Coast Firms ($bil)

Number of Deals


5/15

0

100

200

300

400

500

600

Americas Europe Central Asia/Asia-

Pacific

Japan Africa/Middle East

Volume($bil)

Volume: 1/1/2008-11/17/2008 Volume: 1/1/2007-11/17/2007

Private Equity Slump is a Global Phenomenon

-59%

-81%

-4% -51% -72%


6/15

Measured decline in mid-market buyouts; less reliant onglobal debt financing

$0

$100

$200

$300

$400

$500


Value($bil)

Lo-$500 $500m-$1b $1b-$5b $5b-Hi


7/15

Global Buyout Investments by Sector

Worldwide Buyouts by Industry

21.6

14.4

11

9.5

8.9

6.3

5.8

5.3

4.8

4.3 3.6

4.5

Financials Energy and Power

High Technology Consumer Products and Services

Industrials Materials

Media and Entertainment Healthcare

Telecommunications Consumer Staples

Real Estate Retail

Global M&A - Buyouts Impact

0

50

100

150

200

250

300

350

400

450

500

Financials

EnergyandPower

ConsumerProducts

ConsumerStaples

Materials

Industrials

Healthcare

HighTech

RealEstate

Telecom

Media

Retail

Strategic Volume ($bil)

Buyout Volume ($bil)

*Data through 9/30/2008


8/15

PE Activity was a Key Driver of the M&A Market andInvestment Banking Fees

Imputed Fee Estimates by Freeman & Co

0

2000

4000

6000

8000

10000

12000

14000

16000

2001 2002 2003 2004 2005 2006 2007

Fees($mil)

M&A Exit

Equity Exit

Portfolio Activity

Buyout Financing

Buyout

Fees paid by Financial Sponsors


9/15

Global Retraction in Credit Markets Slows Buyout

Activity; HY Activity down 80% over 2007

0

10000

20000

30000

40000

50000

60000

70000

80000

'04 '05 '06 '07 '08

0

20

40

60

80

100

120

140

160

180

High Yield Bonds ($mil) Number of Deals

0

50

100

150

200

250

300

350

400

450

500

'04 '05 '06 '07 '08

0

100

200

300

400

500

600

700

800

900

Leveraged Loans ($bil) Number of Deals



10/15

Frozen Exit Markets for Venture and Buyouts

0

10

20

30

40

50

60

70

80

90

2001 2002 2003 2004 2005 2006 2007 2008*

Venture-backed IPO Buyout-backed IPO

0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008*

Venture-backed M&A Buyout-backed M&A

US Initial Public Offerings US Mergers & Acquisitions


11/15

Global Private Equity Fundraising

0

50

100

150

200

250

300

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*

Venture Fundraising ($bil) Buyout Fundraising ($bil)



12/15

West Coast Buyout Fundraising Down 38% from 2007levels; Number of Funds on Par with Year-Ago

0

5

10

15


Funds($bil)

0

5

10

15

20

25

NumberofFun

ds

Funds Raised by West Coast Buyout Firms ($bil) Number of Funds


13/15

* net of management fees and carried interest

All calculations are done at the fund level* by Thomson Reuters based on cash flows

and NAVs reported by participating LPs and GPs

Cash flow database contains 1800+ US private equity funds (480+ buyout funds)

Pooled IRR: IRR of a group of funds where their cash flows have been aggregated

together before IRR calculation

Investment Horizon Return: IRR calculated with Net Asset Value as capital outflow atbeginning of period, Net Asset Value at end of period, and actual cash flow in

between

Definitions:

Performance Methodology


14/15


15/15

US Private Equity Performance Index

-10

-5

0

5

10

15

20

1 yr 3yr 5yr 10yr 20yr

All Venture All Buyouts NASDAQ S&P 500


west coast data roundup -- buyouts west final version

Documents