Buyout-backed PE exits hit all time high in 2014: Bain & Co

Bain & Company Global Private Equity Report 2015

The value of private equity (PE) exits in 2014 surged by 67 per cent year on year with buyout-backed exits hitting records, globally.The trend was fuelled mainly by the sales of a handful of very large assets to strategic acquirers and an aggressive IPO market in the first half of the year, said  a report from Bain & Company.

According to the Global Private Equity Report 2015, the IPO exit channel gave a strong performance in Europe; the numbers of buyout-backed IPOs almost doubled in both count and value, making it a record of sorts. In the same period, PE-backed IPO value in Asia Pacific skyrocketed to $63 billion.

Global buyout investment activity barely budged in 2014, declining by 2 per cent in value from 2013.

According to the Bain report, abundant capital from PE funds and global investors, plentiful and cheap debt have both made 2014 a great time for exits. Still, buyers faced intense competition and inflated asset prices due to strong public market valuations.

“Last year was undoubtedly the year of the exits, which raised the caution flag for many buyers,” said Suvir Varma, head of Bain’s Asia Pacific Private Equity Practice. “The surge in global liquidity and near zero-interest rates has inflated asset valuations and boosted acquisition multiples on private PE targets, which will make it more challenging to earn the same high levels of return going forward.”

Read here for a more detailed report.

Also Read:

Navis Capital looking at up to $2b exits

GIC makes two exits – Marico, GPT

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.