In this issue of the Private Equity Digest, we look at four ways PE firms have adapted to the current competitive environment: (i) engaging in more buy-and-build approaches or add-on acquisitions, (ii) investing in early-stage companies, (iii) holding companies for longer periods and (iv) acting as lenders.
In market news, U.S. private equity fundraising and exits continued to trend downward for the month of September as compared to August and July. While the number of funds closed doubled from the previous month, with 18 funds closed in September compared to 9 funds closed in August, the total dollars raised fell to $9.6 billion in September from $10.9 billion in August. The total number of exits also decreased, with fewer corporate sales and IPOs but more secondary buyouts. Sponsor-related M&A activity was mixed, with an increase in the disclosed dollar volume of both U.S. and global sponsor-related M&A deals, but a decline in deal numbers.
