NEW YORK, Sept. 12, 2019 /PRNewswire/ -- CEPRES releases its latest Private Capital Market Outlook report showing that US buyout fundraising activity increased in Q2-2019 by more than 10% reaching its highest quarterly volume.
The fundraising activity coincides with the overall increase in US buyout entry EBITDA pricing multiples that have breached 11x in the median case which far exceeds the 9x median in 2007, and as the positive economic cycle continues into beyond the ten year mark, so is US buyout fundraising and investment activity.
European buyout deal pricing is also trending upwards with the 11x median also surpassing the 10x median in 2007. Second quarter venture capital fundraising in Europe also showed robust growth QoQ and YoY albeit still at a much lower level compared to the US.
The full report is available to CEPRES members from: https://www.cepres.com/latest-intelligence-for-lps
"Our latest transaction analysis illustrates the dispersion in valuation multiples paid for diverse business models. Large amounts of buyout capital are currently focused on businesses with strong revenue growth driven by technological transformation. This is driving up valuations in these segments compared to traditional sectors and businesses unable to leverage technology to drive improved revenue or margins. The massively uncorrelated scalability of revenues leveraging new technologies, generally justifies the increased valuations being paid for these innovative business models and relative pricing is still balanced in a macro sentiment that currently faces a high systematic risk."
Dr. Daniel Schmidt, Founder & CEO, CEPRES.
CEPRES is the leading digital platform for investment analytics & data solutions for private capital markets. CEPRES began in 2001 as the Center of Private Equity Research and was the first to 'look-through' private market funds to underlying deal and asset performance. Today, our award winning online platform securely connects thousands of professionals in the largest private investment network in the world. CEPRES combines the most secure digital data exchange with sophisticated SaaS solutions and expert analysis frameworks to empower LPs, GPs and related professionals. Through CEPRES decision makers can secure their investment data to gain true insights on their portfolio of funds down to single operating assets within a confidential yet fully flexible framework.
The CEPRES platform includes a network connecting buy- & sell-side market participants. Institutional Investors (LPs), Fund Managers (GPs), Advisors, Administrators, Fund of Funds and other investment professionals interact on one platform: GPs confidentially benchmark their track record, attract fitting capital sources and demonstrate their alpha to investors. LPs forecast their portfolio outcomes, optimize asset allocations and enhance due diligence.
To date over 2,300 GPs & LPs have securely exchanged investment data of over 7,200 funds and 73,000 deals worth over $26 Tr. in Enterprise Value.
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SOURCE CEPRES Corp.