Never let facts get in the way of myth about a Public Enemy Sunday, September 30, 2007
Research Recap today highlights the findings from the Ernst & Young study on the Private Equity industry.
Key notables
- the annual rate of growth in enterprise value (EV) achieved last year by the largest PE-backed firms was 33% in the US and 23% in Europe, compared to public company equivalents of 11% and 15% respectively.
- employment levels remained the same, or higher, at exit versus entry in 80% of US deals and 60% of European deals. In Europe employment in businesses owned by PE grew by an average of 5% per annum across the UK, France and Germany, where two-thirds of the deals took place, compared to 3% for equivalent public company benchmarks.
- Average EBITDA growth rates that were 17% higher than equivalent public companies.
You can get a copy of the E&Y report for free here
Certainly Private Equity firms will find the climate tougher in an environment of higher interest rates and fewer deals will pass the necessary tests to qualify as a potentially profitable opportunities. But don't write them off quite yet.
Labels: private equity
posted by John Wilson @ 8:01 PM Permanent Link
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