Are Public-to-Private Transactions On The Way Out?

Despite the fact that public-to-private transactions have been down this year, it’s incorrect to conclude that this type of buyout is dead, suggests Preqin’s recent report. Preqin in its October 2014 report titled “Billion-Dollar Question: Are Public-to-Private Transactions on the Way Out?” notes that these transactions occur opportunistically.

Upswing in PE-backed buyout deal value

The Preqin report points out that since 2009, there has been a year-over-year increase in aggregate private equity-backed buyout deal value. Notably as of 2014 YTD, deal value has touched $249 billion for the year and still has the potential to eclipse 2013’s $296 billion.

As can be evidenced from the following graph, the buyout industry is still far from matching the market highs of 2006, when the...