PE-Backed M&A Drops 26% in Q1, Firms Putting in 31% Equity In Deals
What's a PE index? According to the Private Equity Growth Capital Council, the index is designed to provide "an accurate snapshot of the state of the private equity market at any given point in time." The index, PEGCC said, reached its highest level at the end of first quarter since the height of the recession. What is that? The index settled at 119.2, which is way above its 10-year moving average of 100, but still below the high reached in Q4 2006 of 154.9. So things are good, I guess. Much more relevant--for me--is the data PEGCC kinda put together. The dollar volume of PE-backed M&A fell by 25.7% to $51.7 billion in first quarter compared to $69.6 billion in fourth quarter 2010, PEGCC said citing Thomson Reuters data. The reason for the decline? The PEGCC said it was the lack of "large and mega buyout activity" this year.
