A THOROUGH UNDERSTANDING OF PRIVATE EQUITY

RETOUR SOMMAIRE

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - 2010

INDUSTRY OVERVIEW

than the US market, with an average private equity investment as percentage of GDP rate of 0.42% in 2008 20 . In terms of average size, Europe-focused funds tend to be larger than their Asia- and Rest of the world-focused counterparts.

Figure 13 displays the number of funds and the aggregate value in $ billion as at Q3 2009 for each region:

Figure 13: Number and value of funds in market by region as at Q3 2009

800

800

756

700

700

600

600

500

500

436

399.7

379

400

400

300

300

Number of funds

Aggregate target in $bn

200

200

167.7

167.6

100

100

0

0

North America

Asia & Rest of the World

Europe

Number of funds Aggregate Target

Source: Preqin Ltd, 2009

1.3.1

The North American private equity market

North American private equity firms account for 53% of the total number of private equity fund managers worldwide and the overwhelming majority of these are based in the United States, which remains the most developed country for private equity.

Capital commitments to US private equity funds increased by 9,200% between 1980 and 2008, as displayed in figure 14.

Figure 14: Capital commitments to US private equity funds and number of funds (1980-2008)

Venture

Buyouts and Mezzanine

Private Equity

Year

Capital $ m No. Funds

Capital $ m No. Funds

Capital $ m No. Funds

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990

2,025.6 1,486.5 1,705.4 3,942.2 2,964.3 3,988.5 3,788.4 4,376.7 4,435.0 4,902.6 3,229.0

52 75 87

183.5 126.8 611.3

4 4

2,209.1 1,613.3 2,316.7 5,300.5 6,446.8 7,013.0 8,790.3 19,942.4 15,761.4 16,868.8 11,090.1

56 79

13 15 22 22 31 41 50 78 62

100 158 138 143 134 157 154 183 149

143 116 121 103 116 104 105

1,351.3 3,482.5 3,024.5 5,001.9 15,565.7 11,326.4 11,966.2 7,861.1

87

20 Source: EVCA, 2009

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