Eamon

Mid-Market Purchase Price Multiples For YTD 2012 Ease From 2011 Level

Deal prices for portfolio companies stood at 7.2x EBITDA at the end of the third quarter of 2012.

Market at a Glance

U.S.-based buyout and mezzanine shops have secured about $129.5 billion in its fundraising efforts through the first nine months of 2012. In addition, disclosed deal volume is around $57.6 billion through Sept. 17.

M&A Exits & IPOs Tick Down; IPO Returns Positive

U.S.-based financial sponsors seem to be holding on to their investments longer these days, based on the numbers Buyouts has tracked on the M&A and IPO fronts. On a quarter-to-quarter basis, both exits strategies seem to be in less use at the end of each period.

Chart of the Week: A Majority Of Buyout Shops Allow Recycling Rights

Given that even in the best of times it’s never easy to raise money, buyout shops may want to pay more attention to recycling provisions in the months ahead.

Chart of the Week: Buyout-backed M&A Deals Recover From 2008 Trough

Exits through M&A have been recovering nicely for buyout shops since 2008, good news for buyout professionals hoping to collect more carried interest.

Just 17 Portfolio Companies Flirting With Default

Standard & Poor’s classified slightly more entities as at risk of a debt default last month, compared with its view in late May. By our count, the number with financial sponsors dropped by one to 17 over the same period

Market At A Glance

Buyout and mezzanine firms based in the United States have raised $120.17 billion so far this year, reflecting a number of interim and final closings including the $2.5 billion close of Blackstone Energy Partners LP, which had a $2 billion target.

Chart of the Week: U.S. High-Yield Debt Market Shows Strength

The high-yield corporate debt market is showing signs of strength in the United States, where proceeds are up 12 percent from a year earlier, helping to fuel a minor buyout binge.

Chart of the Week: How Popular Are Management Fee Waivers?

The New York attorney general, Eric Schneiderman, is investigating a tax strategy that buyout firms employ whereby LPs agree to waive a percentage of management fees upfront in exchange for an equivalent amount to be paid later from partnership profits.

Chart of the Week: Silver Lake Partners III Tops All Mega Funds of 2006, 2007 With 19.7% IRR

Silver Lake’s Fund III may hold the top IRR return at 19.7 percent among the mega funds of 2006 and 2007, but Apollo Global Management LLC has two of its investment vehicles in the top five.