Q3 2016 Private Equity Industry Trends

Q3 2016 KEY HIGHLIGHTS

• Regarding specific Information Industry markets, two of the overall Healthcare vertical’s top three largest deals in Q3 2016 were backed by financial sponsors.

Q3 2016 KEY TRENDS

• Total transaction volume in the 1st 3 Quarters of 2016 experienced a slight uptick over the 1st 3 Quarters of 2015, from 472 to 477.
• Total transaction value in the 1st 3 Quarters of 2016 decreased ten percent over the 1st 3 Quarters of 2015, from $50 billion to $45.1 billion.
• Sponsored deals represented 34 percent of total value in the overall Software horizontal during the 1st 3 Quarters of 2016, as opposed to 44 percent in the 1st 3 Quarters of 2015.
• The number of secondary buyouts year-to-date rose by ten percent compared to the same period in 2015, from 59 to 65.

MULTIPLES & VALUE TRENDS

• The median revenue multiple on a year-over-year basis improved from 2.1x to 2.4x.
• The median EBITDA multiple on a year-over-year basis remained nearly constant at 11.0x.

TOP TEN DEALS THROUGH Q3 2016

The top ten deals by value have seen seven new additions since our half year report, including four of the five largest year-to-date. The industry’s highest value transaction without a Software component thus far in 2016 was IMG Worldwide’s acquisition of Ultimate Fighting Championship, a professional mixed martial arts organization, for $4 billion.

These seven transactions, with an aggregate value of $20.3 billion, represented 45 percent of transaction value in the 1st 3 Quarters of 2016 and 81 percent of Q3 2016 transaction value.