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Trend Reports

2015 Third Quarter

 
 

2015 l 3rd Qtr l Trends Report l Private Equity Industry

Friday, October 16, 2015

Q3 2015 KEY HIGHLIGHTS

  • The largest transaction in Q3 2015 and year-to-date was The Carlyle Group's announced acquisition of Veritas Technologies Corporation, a provider of storage and server management software solutions, for $8 billion. This deal represented almost one-third of the industry's aggregate value during the quarter.

Q3 2015 KEY TRENDS

  • Total transaction volume in Q3 2015 declined by 17 percent over Q2 2015, from 159 to 136. However, volume year-to-date increased six percent compared to the corresponding timeframe in 2014.
  • Total transaction value in Q3 2015 gained 22 percent over Q2 2015, from $20 billion to $24.4 billion. Moreover, aggregate value nearly quadrupled when compared to Q1 2015.
  • Sponsored volume in the industry's Education vertical in Q3 2015 improved by 24 percent over Q2 2015, from 25 to 31.
  • The number of secondary buyouts year-to-date rose by 12 percent compared to the same period in 2014, from 51 to 57.

MULTIPLES & VALUE TRENDS

  • The median revenue multiple from 2014 through Q3 2015 increased by 21 percent, from 1.9x to 2.3x. The median EBITDA multiple moved upward by 11 percent, from 12.4x to 13.7x.

TOP TEN DEALS THROUGH Q3 2015

The top ten deals by value have seen seven new additions since our half year report. Of note, Vista Equity Partners' acquisition of Solera Holdings, a provider of risk management software in the automotive and property marketplace, which includes the property and casualty (P&C) sector, was the largest deal ever completed by the private equity firm.

These seven transactions, with an aggregate value of $20.5 billion, represented 45 percent of transaction value in the 1st 3 Quarters of 2015 and 84 percent of Q3 2015 transaction value.



 

Top Ten Deals