Monday, 20 October 2014
Last updated 2 days ago
Nov 11 2008 | 12:39pm ET
The U.S. private equity industry is suffering along with the rest of U.S. economy. According to new findings by research firm PitchBook Data, deal flow declined 34% in the first three quarters and inflows dropped by 57% from $354.5 billion to $152.3 billion from the same period last year.
Despite the industry’s dramatic declines from 2007, the first three quarters of 2008 remained relatively strong compared to historical levels, according to the study. The amount invested through the third quarter of 2008, $152.3 billion, was the third-highest on record, behind the record-breaking 2007 and the $160 billion invested during the same period in 2006.
The median size of p.e. deals this year is a more conservative $66 million, compared to $76 million in 2007. The median size of leveraged buyout deals dropped more significantly, from $106.5 million in 2007 to $82 million, a 23% decline.
“There is no disputing that the current economic environment is hindering private equity deal flow as credit for LBOs has become increasingly difficult to secure,” said John Gabbert, CEO of PitchBook. “The private equity industry is going through a correction as it returns to pre-bubble transaction levels, valuations and deal terms.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...