Private Equity Shrinkage in 2008
Private equity in 2008 was a shrinking slice of a shrinking M&A pie, according to preliminary data from Thomson Reuters (publisher of peHUB). Private equity firms have sponsored approximately $233 billion worth of deals so far this year, which represents nearly a 70% decrease in volume from last year's $765 billion tally. It's also the lowest annual total since 2003, when just $140 billion worth of PE-sponsored deals were transacted. For contrast, the global M&A market has "only" shrunk by a 29.8% rate between 2007 and 2008 -- meaning the private equity's piece of the action has dropped from around 18.35% to around 8 percent. It's important to note that deal volume is not necessarily indicative of a market's health or infirmity, as a goodly portion of last year's $765 billion was spent foolishly. But still, it's
