In this issue of the Private Equity Digest, we continue our look at current trends in GP stakes investing in an interview with Paul, Weiss M&A partner Ellen Ching.
In market news, U.S. private equity fundraising was up in May compared to April based on capital raised, but down by number of funds closed. The number of U.S. sponsor-backed exits was lower overall compared with April, although sales, as a sector, was up slightly. The low numbers of IPOs in the last six months compared to historical norms is noteworthy. U.S. sponsor-backed exits as measured by dollar volume was, however, up in May compared to April, again, led by sales as a sector, but decreasing in secondary deals and IPOs.
Global sponsor-related M&A activity was up in May compared to April, with an increase in both deal numbers and disclosed dollar volume in May compared to April. U.S. sponsor-related M&A activity was also up, with an increase in both deal numbers and disclosed dollar volume in May compared to April. Global sponsor-related M&A activity as measured by number of deals and U.S. sponsor-related M&A activity as measured by both dollar value and number of deals all hit 12-month highs.
