Press Release 1 st April 214 Private Equity-Backed Buyout Investment Across North America Up 5% in Q1 214 Compared to Q4 213 North American private equity-backed buyout investment totalled $48bn during the first quarter of 214, up from the $32bn worth of investment seen in the final quarter of 213 An increased level of global private equity-backed buyout investment over the previous two quarters has been primarily brought about by strong investment activity in North America. A total of 672 private equity-backed buyout investments were made globally in Q1 214 totalling $79bn in value, compared to 769 investments valued at $61bn in Q4 213. While Asia deal flow remained buoyant, activity in Europe saw a notable drop in the value of deals being announced compared to Q4 213; however, the $16bn worth of European investments was almost a 12% increase on the aggregate value of deals in the same quarter in 213. Private equity-backed exit flow has declined noticeably, however, with 32 exits valued at $88bn in Q1 214 compared to 394 exits valued at $93bn in Q4 213. Other Key Facts on Private Equity-Backed Buyout Deals: The aggregate value of European buyout deals in Q1 214, at $16bn, was 9% lower than it was for deals in Q4 213. All other regions saw an increase in the aggregate value of deals between the two quarters. Buyout deal flow in Asia was up, with $13bn worth of deals in Q1 214 compared to $9bn in Q4 213 and just $4bn in Q1 213. of all buyout deals in Q1 214 were leveraged buyouts, and these accounted for 5 of the aggregate value of global deals in Q1 214. In the first quarter of 213, these deals accounted for the same proportion, but 73% of the aggregate value of global deals. Total private equity buyout dry powder available to fund managers globally to invest in opportunities currently stands at $413bn, up from $354bn at the start of 213. The industrials sector was again the most prominent sector in terms of the number of investments, accounting for 22% of all deals in Q1 214. The consumer & retail sector accounted for the largest proportion of capital invested in Q1 214 of any sector at 22%. The largest private equity-backed buyout deal this quarter was the announced $9.4bn acquisition of Safeway, Inc. led by Cerberus Capital Management. For more information and analysis, please see the factsheet that follows. Comment: The private equity-backed buyout market continues to grow, especially in North America, as successive quarterly figures demonstrate this. While competition for deals remains very high, and there are concerns that assets are overpriced, private equity firms are demonstrating the continued ability to deploy institutional capital. With high levels of buyout dry powder, and intense competition among private equity firms for investment opportunities, it may prove challenging to maintain this level of investment, but the signs are so far encouraging for 214. Ignatius Fogarty Head of Private Equity Products, Preqin About Preqin: Preqin is the leading source of information for the alternative assets industry, providing data and analysis via online databases, publications and bespoke data requests. Preqin has built a reputation in the alternative assets industry for providing the most comprehensive and extensive information possible. Leading alternative assets professionals from around the world rely on Preqin s services daily, and its data and statistics are regularly quoted by the financial press. For more information, please visit: www.preqin.com New York: One Grand Central Place, 6 E 42nd Street, Suite 2544, New York NY 1165 Tel: +1 212 35 1 London: Equitable House, 47 King William Street, London EC4R 9AF Tel: +44 ()2 7645 8888 Singapore: One Finlayson Green, #11-2, Singapore, 49246 Tel: +65 635 22 Silicon Valley: 33 Twin Dolphin Drive, Suite 6, Redwood City, CA 9465 Tel: +1 65 632 4345 Web: www.preqin.com / info@preqin.com
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Q1 214 Private Equity-Backed Buyout Deals and Exits April 214 Page 1 of 3 Fig. 1: Quarterly Number and Aggregate Value of Private Equity-Backed Buyout Deals Globally, Q1 212 - Q1 214 Fig. 2: Quarterly Aggregate Value of Private Equity- Backed Buyout Deals by Region ($bn), Q1 212 - Q1 214 Key Facts 1, 9 8 7 6 5 4 3 2 1 867 93 832 792 789 8 733 735 757 769 79 75 72 672 69 68 61 41 212 213 214 ($bn) 1 9 8 7 6 5 4 3 2 1 ($bn) (($bn) 1 9 8 7 6 5 4 3 2 1 2.6 3.9 1.7 13.9 3.1 2.6 7.8 3.5 8.2 12.8 5. 4.2 2.1 7.1 12.1 27.6 13.9 2.4 9. 15.5 16.7 3.7 2.1 3.7 72.2 16.3 17. 14. 52.2 39.8 43.1 33.1 36. 32.2 47.5 21.4 212 213 214 North America Europe Asia Rest of World 78.9 672 47% 32 the aggregate value ($bn) of private equity-backed buyout deals announced globally in Q1 214, 3% higher than the value of investments in Q4 213. the number of private equity-backed buyout deals announced in Q1 214, down from 769 in Q4 213 increase in aggregate value for North American deals in Q1 214 compared to Q4 213. Asia witnessed a 42% increase, while Europe saw a drop of 9%. private equity-backed buyout exits valued at $87.7bn were witnessed in Q1 214. Fig. 3: Breakdown of Number and Aggregate Value of Private Equity-Backed Buyout Deals in Q1 214 by Type Fig. 4: Breakdown of Number and Aggregate Value of Private Equity-Backed Buyout Deals in Q1 214 by Value Band Fig. 5: Breakdown of Number and Aggregate Value of Private Equity-Backed Buyout Deals in Q1 214 by Industry 1% 9% 8% 7% 6% 5% 3% 2% 1% % 1% 3% 7% 3% 5% 16% 1% 37% 28% 5 LBO Add-on Growth Capital Recapitalization PIPE Public to Private 1% 9% 8% 7% 6% 5% 3% 2% 1% % 1% 8% 16% 17% 49% 63% 6% Less than $1mn $1-249mn $25-499mn $5-999mn $1bn+ 25% 2% 1% 5% % 22% 22% 2% 17% 12% 12% 11% Industrials Business Consumer & Retail Information Technology Healthcare 9% 6% Energy & Utilities 7% 7% 2% 3% Telecoms & Media Food & Agriculture 2% 3% % Materials Other
Q1 214 Private Equity-Backed Buyout Deals and Exits April 214 Page 2 of 3 Fig. 6: Global Number and Aggregate Value of Private Equity-Backed Exits, Q1 212 - Q1 214 Fig. 7: Global Number of Private Equity-Backed Exits by Type, Q1 212 - Q1 214 Fig. 8: Global Private Equity Buyout Fund Dry Powder, December 26 - April 214 No. of Exits 45 4 35 3 25 2 15 1 5 371 363 337 323 324 95 85 32 8 75 49 51 394 329 93 88 32 71 12 1 8 6 4 2 Aggregate Exit Value ($bn) No. of Exits 45 4 35 3 25 2 15 1 5 24 199 181 174 193 164 179 161 159 86 7 115 89 87 122 87 16 16 11 88 5 13 15 11 8 74 8 9 8 47 7 42 43 42 4 47 Dry Powder ($bn) 6 5 4 3 2 1 38 439 483 482 424 389 354 4 413 212 213 214 No. of Exits Aggregate Exit Value ($bn) 212 213 214 IPO Restructuring Sale to GP Trade Sale Dec-6 Dec-7 Dec-8 Dec-9 Dec-1 Dec-11 Dec-12 Dec-13 Apr-14 Fig. 9: 1 Largest Private Equity-Backed Buyout Deals Announced in Q1 214 Firm Deal Date Investment Type Safeway, Inc. Mar-14 Merger 9.4 D Announced Deal Size (bn) Deal Status Investors Albertsons LLC, Cerberus Capital Management, Kimco Realty Corporation, Klaff Realty LP, Lubert-Adler, L.P, Schottenstein Real Estate Group Bought From/Exiting Company Location Primary Industry - Retail MultiPlan, Inc. Feb-14 Buyout 4.4 D Announced Group, Starr Investment Holdings BC, Silver Lake Healthcare IT Ortho-Clinical Diagnostics, Inc. Jan-14 Buyout 4. D Announced Carlyle Group Johnson & Johnson Medical Technologies Industrial Packaging Group Feb-14 Buyout 3.2 D Announced Carlyle Group Illinois Tool Works Inc. Manufacturing Nets Holding A/S Mar-14 Buyout 17. DKK Announced Advent International, ATP Lifelong Pension, ATP Private Equity, Bain Capital, Via Venture Danske Bank, DnB NOR Bank, Nordea Bank Giant Interactive Group, Inc. Mar-14 Public To Private 3. D Announced Baring Private Equity Asia, Hony Capital - China Gaming Emeritus Corporation Feb-14 Add-on 2.8 D Announced Brookdale Senior Living, Fortress Investment Group Saratoga Healthcare Global Logistic Properties Limited Feb-14 PIPE 2.5 D Announced Bank of China Group Investment, Hopu Investment Management - Singapore Logistics Sedgwick CMS Jan-14 Buyout 2.4 D Completed Kohlberg Kravis Roberts, Stone Point Capital SkillSoft Mar-14 Buyout 2. D Announced Charterhouse Capital Hellman & Friedman, Stone Point Capital Advent International, Bain Capital, Berkshire Denmark Ireland Financial Financial Internet
Q1 214 Private Equity-Backed Buyout Deals and Exits April 214 Page 3 of 3 Fig. 9: 5 Most Notable Exits in Q1 214 Firm Grupo Corporativo Ono Initial Investment Date Initial Investment Type Initial Deal Size (bn) Jun-3 Buyout - Oriental Brewery May-9 Buyout 1.8 D All Investors Exit Date Exit Type Arle Capital, JPMorgan, Providence Equity, Quadrangle Group, Thomas H Lee Kohlberg Kravis Roberts, Affi nity Equity Exit Value (bn) Acquiror (Exit) Primary Industry Location Mar-14 Trade Sale 7.2 EUR Vodafone UK Telecoms Spain Jan-14 Trade Sale 5.8 D MultiPlan, Inc. Jul-1 Buyout 3.1 D BC, Silver Lake Feb-14 Sale to GP 4.4 D YES Network Jun-1 Growth Capital.4 D Goldman Sachs, Providence Equity Aptalis Pharma Dec-1 Merger.6 D TPG Jan-14 Trade Sale 2.9 D Anheuser-Busch InBev Group, Starr Investment Holdings Beverages Healthcare IT South Korea Jan-14 Trade Sale 3.9 D 21st Century Fox Media Forest Laboratories, Inc. Pharmaceuticals Preqin provides information, products and services to private equity firms, funds of funds, investors, placement agents, law firms, advisors and other professionals across the following areas: Fund Performance Fundraising Fund Manager Profiles Compensation and Employment Investor Profiles Fund Terms Buyout Deals Venture Capital Deals For more information, or to arrange a demo, please visit: www.preqin.com/privateequity New York One Grand Central Place 6 E 42nd Street Suite 63 New York NY 1165 Tel: +1 212 35 1 London Equitable House 47 King William Street London EC4R 9AF Tel: +44 ()2 7645 8888 Singapore One Finlayson Green #11-2 Singapore 49246 Tel: +65 635 22 San Francisco 58 California Street Suite 1638 San Francisco CA 9414 Tel: +1 415 635 358 alternative assets. intelligent data.