One of the key trends we follow is the funding available to equity firms, as this is a vital indicator of how much capital is available for future acquisition purposes. This is a critical factor because equity firms exist to do one thing: Invest committed capital in order to earn a return for their limited partners. And the good news is that 2016 was a record year for fundraising. This is how Mergers and Acquisitions magazine described the situation:
The private equity coffers are primed for M&A deals in 2017, thanks to successful fundraising in 2016. The dollars raised were on par with 2014, the best year since the financial crisis, according to preliminary data from Preqin. In addition, 2016 was the fourth consecutive year in which annual fundraising totals exceeded $300 billion.
The following table highlights the 2016 data:
Since these 2016 numbers are preliminary, it is expected that once the final tallies are done, 2016’s total will easily exceed the record amount raised in 2014. Keep in mind that most funds have a limited life span in which to invest their capital. Typically 3-5 years is normal, which means that on a combined basis, since 2013, equity firms have raised over $1.3 trillion.
This is great news for owners of privately held companies because the reality is until this money is invested, it is not earning a return for the firms. The fantastic news is that since most funds use debt to fund portions of their acquisitions, the $1.3 trillion will be leveraged to invest significantly more.
Certainly, not every privately held company is a viable target for an equity fund. Generally, these firms have specific criteria regarding industry, size, and location for their investment in targets.
Generational Equity dealmakers work directly with professional buyers on a daily basis. And with over 30,000 registered buyers in our database, we have access to most likely any firm that would have an interest in your industry and/or size of company.
To learn more about how you can take advantage of the $1.3 trillion needing to be invested, please reach out to us and we will be glad to arrange for you to attend one of our executive exit planning conferences. While there you will learn about all the current trends driving buyer activity and discover how you can begin to build a buyer-ready business today.
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2017 Generational Equity, LLC. All Rights Reserved.
it all started with a conference.
start your story today,
speak directly with one of our senior advisors +1-972-232-1121
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
Generational Group’s affiliates are all part of one corporate family, they work with one another and may work together to provide services to you. The sharing of your information among affiliates enables Generational Group to serve you more efficiently and makes it more convenient for you to do business with Generational Group. Generational Group is permitted by law to share information with its affiliates. All of our affiliates follow similar privacy policies.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Group.
Success, you have been added to our list.