Preqin Quarterly Update: Private Equity & Venture Capital, Q3 2016
Private equity & venture capital dry powder continues to reach record levels, with an aggregate $839 in available capital as of the end of Q3 2016. Portfolio company valuations have also increased, with the average buyout deal size standing at $405mn this quarter. 2015 witnessed record levels of capital distributions ($443bn), marking the fifth consecutive year during which they outstripped capital calls. The majority of institutional investors active in private equity stated that their confidence in the asset class remains strong; buyout remains the most sought-after fund type, with 70% of investor searches in Q3 2016 including this strategy.