Private equity

Latest Stories

Looking for Value in Add-Ons

By Justin Kaplan | November 3, 2016

In previous posts, I have discussed the rising valuations and increased use of equity to finance deals in the U.S. private equity markets. This week’s chart shows yet another trend that has emerged as valuations continue to rise. Add-on acquisitions have been on an upward trajectory since approximately 2006 and have reached a decade high as a percent of buyout transactions, reaching 64% in 2016.

Could the M&A Cycle Be Entering Extra Innings?

By Justin Kaplan | August 4, 2016

Midway through 2016, deal multiples in private equity and merger and acquisition (M&A) transactions in the U.S. have climbed almost a full turn higher than the levels seen in 2015, sitting at 11.3x (EV/EBITDA*).

Is There Alpha in Private Assets?

By Trevor M. Williams | July 7, 2016

While the market volatility-buffering benefits of private equity are well known, advocates of the investment vehicle have also long argued that private equity-backed companies tend to perform better than their publicly-traded counterparts.

Are Co-Investments a “Free Lunch” for LPs?

By Trevor M. Williams | January 7, 2016

More and more institutional investors consider co-investments an important part of their overall private equity portfolios. According to a September 2015 survey, a vast majority of LPs have targeted or plan to target co-investments and see the structure as an attractive way to access private assets.

Is Technology Entering a Bubble?

By Trevor M. Williams | November 5, 2015

According to venture capital data aggregator CB Insights, there are currently 143 “unicorns” (private companies valued at $1 billion or above) worldwide, with a combined value of $509 billion. Eighty… Read More

Finding Value in the Private Equity Middle Market

By Justin Kaplan | September 17, 2015

This week’s chart focuses on finding value in the private equity middle market by looking at the purchase price multiples of companies whose enterprise values are between $100-$500 million (Middle Market) versus those valued at less than $100 million (Lower Middle Market).

The Increasing Relevance of the Private Equity Secondary Market

By Trevor M. Williams | August 20, 2015

Once characterized by its scarce liquidity, the secondary market for private equity interests has evolved into a much more significant and active marketplace.

The “Mutualization” of Late-Stage Venture Capital Valuations

By Trevor M. Williams | June 25, 2015

Mutual funds are increasingly competing with, and in many cases pushing out, venture capital (VC) firms from later-stage financing rounds of private tech companies.

Venture Capital Investors Could Benefit from Reduced Corporate R&D Spending

By Trevor M. Williams | April 30, 2015

Corporations are shifting money once devoted to in-house R&D towards corporate venture funds that invest in start-ups with promising technologies.

Energy Companies Demonstrate Resilience with Stock Issues

By Greg Zappin | April 9, 2015

To their credit, as it became clear that oil prices would stay lower for longer, the management teams of energy companies responded aggressively.

Disclosure Statement

The material provided here is for informational use only. The views expressed are those of the author, and do not necessarily reflect the views of Penn Mutual Asset Management.


This material is for informational use only. The views expressed are those of the author, and do not necessarily reflect the views of Penn Mutual Asset Management.  This material is not intended to be relied upon as a forecast, research or investment advice, and it is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice.  The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete.  Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements.  Actual results may differ significantly.  Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.

Investing involves risk, including possible loss of principal.  Past performance is no guarantee of future results.  All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.

High-Yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in higher yielding, lower rated corporate bonds have a greater risk of price fluctuations and loss of principal and income than U.S. Treasury bonds and bills. Government securities offer a higher degree of safety and are guaranteed as to the timely payment of principal and interest if held to maturity.

All trademarks are the property of their respective owners. This material may not be reproduced in whole or in part in any form, or referred to in any other publication, without express written permission.

Copyright © 2014 Penn Mutual. All Rights Reserved. All trademarks are the property of their respective owners.

Read Less...