Private Equity-backed Buyout Exits 2014 YTD

by Catriona McCarron

  • 21 Feb 2014
  • PE

Preqin’s Buyout Deals Analyst recorded 157 private equity-backed buyout exits with an aggregate value of $47.4bn, in 2014 YTD. 

The largest exit so far this year is the trade sale of Oriental Brewery by Kohlberg Kravis Roberts and Affinity Equity Partners to Anheuser-Busch InBev, for $5.8bn. So far in 2014, trade sales have been the most prominent exit type in terms of number and aggregate value of exits, with 98 exits valued at $34.1bn. IPOs and follow-on share offerings follow, in regards to the aggregate value of exits, with 17 exits reaping an aggregate $7.7bn, including Santander Consumer USA’s initial public offering of 75mn shares at $24 per share, raising a total of $1.8bn in January 2014. 

The average holding period in so far this year is equal to that seen last year and stands at 5.5 years. Asian investments have had the shortest holding periods of 4.8 years while investments in regions in other regions outside of North America, Europe and Asia have the longest, with 6.3 years. North America has witnessed a 5.4 year holding period in 2014 YTD while the European portfolio companies fully exited in 2014 YTD were held for 5.7 years on average.

As for exits by industry, the industrials sector has seen the highest number of private equity-backed exits in 2014 YTD with 46 exits at an aggregate value of $6.5bn; a continuing trend from 2013, in which industrials also accounted for the largest number of exits at 373 or 27% of the total number. As for the industry with the highest aggregate exit value, healthcare has the largest total exit value in 2014 YTD of $10.1bn, $4.4bn of which came from BC Partners and Silver Lake’s trade sale of MultiPlan, Inc. to Starr Investment Holdings and Partners Group in February 2014. 

Regionally, North America has seen the majority of private equity-backed exits in 2014 YTD, contributing 56% to total number of exits, and 59% or $28.2bn towards aggregate exit value, which is an increase from the 50% and 56% experienced in 2013, respectively. Private equity-backed exits in Asia have seen an 11 percentage points rise on the proportion of aggregate exit value contributed by Asian exits in 2013, while experiencing three percentage points decrease in regards to the proportion of number of exits that the Asian exits accounted for last year. Private equity-backed exits in Europe have accounted for 35% of all exits globally in terms of number, similar to the market share taken up by European exits in 2013; however, the aggregate value of exits in the region contributed only 22% to the global total in 2014 YTD, compared to 35% last year.

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