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2014 Third Quarter

 
 

2014 l 3rd Qtr l Trends Report l Private Equity Industry

Wednesday, October 29, 2014

Q3 2014 KEY HIGHLIGHTS

  • The industry's most active acquirer year-to-date was Vista Equity Partners with 27 transactions, ten of which occurred in Q3 2014.
  • Vista was also responsible for the largest transaction in Q3 2014 and year-to-date with the acquisition of TIBCO Software, a provider of infrastructure and business intelligence software, for $4.0 billion.

Q3 2014 KEY TRENDS

  • Total transaction volume in Q3 2014 declined by eight percent over Q2 2014, from 150 to 138. However, volume year-to-date increased 24 percent compared to the corresponding timeframe in 2013.
  • Total transaction value in Q3 2014 remained nearly constant over Q2 2014, from $12.2 billion to $12.0 billion.
  • Transaction volume in the industry's Healthcare vertical in Q3 2014 improved by 35 percent over Q2 2014.
  • The number of secondary buyouts year-to-date rose by 50 percent compared to the same period in 2013, from 34 to 51.

MULTIPLES & VALUE TRENDS

  • The median revenue multiple from 2013 through Q3 2014 saw an uptick, from 2.1x to 2.4x. The median EBITDA multiple from 2013 through Q3 2014 moved slightly, from 12.0x to 12.4x.

TOP TEN DEALS THROUGH Q3 2014

The top ten deals by value have seen two new additions since our half year report. Of note, five of the industry's top ten highest value deals year-to-date occurred in Q1 2014, two of which occurred in the vertical Education market: Charterhouse Capital Partners' acquisition of SkillSoft Limited and Hellman & Friedman LLC's acquisition of Renaissance Learning, Inc.

These two transactions, with an aggregate value of $6.0 billion, represented 16 percent of transaction value in the 1st 3 Quarters of 2014 and 50 percent of Q3 2014 transaction value.



 

Top Ten Deals