US private equity tops $148bn in 2010

More than 60% of capital deployed globally by private equity firms was invested in North American companies last year, a report by The Private Equity Growth Capital Council has found.

US portfolio companies dominated the private equity market in 2010, accounting for over $148 billion in deal volume in 2010, according to a report from the Private Equity Growth Capital Council (PEGCC).

The report, which assesses how private equity was invested across regions, countries and within the US, was compiled using PEGCC and Thomson Reuters data.

Globally, North American investments received the largest percentage of investments. Private equity firms invested over 60 percent of the world’s $251.4 billion deal volume in the region. European portfolio companies received $68.3 billion, or 27.2 percent, of global deal value.

The report highlighted how US private equity investments were distributed by state and congressional district. Investments in California accounted for the largest slice of the private equity pie; 195 portfolio companies collected 14.9 percent, or $16.2 billion, of the country’s total deal value. Illinois, New York, Texas and Connecticut rounded out the top five. 

Private equity firms invested heavily in Illinois’ seventh congressional district, which covers Chicago’s downtown and north side. The district received $8.5 billion in private equity investments, accounting for nearly 8 percent of total US deal value.

“This reports blasts the mythology that private equity is west or east coast-centric,” said interim PEGCC President Steve Judge in a statement. Judge replaced Doug Lowenstein, who stepped down from his role as chairman earlier this month.

The report also indicated that US private equity firms were the most active on the year, accounting for over $200 billion of global deal value. UK firms ranked a distant second, investing $39.3 billion.