As PE Investment Slows, Competition For Quality Remains Fierce

As PE Investment Slows, Competition For Quality Remains Fierce by Garrett James Black, PitchBook

Although overall deal value remains fairly strong on a historical basis, it’s clear U.S. PE investment is experiencing a downturn. Yet, even in a slowing 4Q 2015, median EV/EBITDA multiples for companies with enterprise values exceeding $250 million remained on the higher end, closing in on 12x.

U.S. PE investment

Taken in conjunction with diminishing activity, that may well be the result of only quality deals closing in an uncertain environment. At the same time, it reflects the current dealmaking landscape: PE firms are flush with capital and able to secure...