AMERICAN INVESTMENT COUNCIL
2018-Q2 Private Equity Industry Investment Report Table of Contents
Page
Executive Summary 3 Business Products & Services 5 Consumer Products & Services 7 Information Technology 9 Financial Services 11 Healthcare 13 Materials & Resources 15 Energy 17
PAGE 2 Executive Summary
In the first half of 2018, Business Products and Services (B2B), Consumer Products and Services (B2C), and Information Technology (IT) sectors received more than half of all private equity investment. Fund managers invested $19B in B2C companies, while IT-related companies and B2B companies each received approximately $18 billion in investment during the same period. In addition, fund managers provided $14 billion to Energy companies while businesses in the Financial Services, Healthcare, and Materials and Resources sector secured investments of $11 billion, $11 billion and $7 billion, respectively.
Overall, quarterly private equity investment declined to $41 billion from $58 billion in Q2. Only Consumer Products and Services and Healthcare saw increases in investment compared to the previous quarter. Investment rose from $9 billion to $10 billion and from $5 billion to $6 billion in Consumer Products and Services and Healthcare, respectively. Investment in the Information Technology sector experienced the steepest quarterly decline, falling $8 billion to $5 billion in Q2. While investment in Energy companies fell to $4 billion from $10 billion, other sectors—Business Products and Services, Financial Services, and Materials and Resources—saw modest declines.
Finally, Energy Fundraising saw a significant decline from the previous quarter, falling to $450 million.
PAGE 3 2018 H1 Industry Investment
PAGE 4 Business Products & Services (B2B) Deals
Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor Ply Gem Industries 04/12/2018 $2.40 Clayton, Dubilier & Rice ACE & Company, Canada Pension Plan Noble Energy (Gulf of Mexico Assets) 04/12/2018 $0.58 Investment Board, et al* RPX 06/19/2018 $0.55 HGGC
*Fieldwood Energy, Riverstone Holdings
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Source: PitchBook Consumer Products & Services (B2C) Deals
Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor
Blackhawk Network Holdings 06/15/2018 $3.50 P2 Capital Partners, Silver Lake Management Charlesbank Capital Partners, Princess Hearthside Food Solutions 05/23/2018 $2.40 Private Equity Holding NPC International 04/25/2018 $1.00 Eldridge Industries
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Source: PitchBook Information Technology Deals
Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor
CommerceHub 05/21/2018 $1.10 GTCR, Sycamore Partners Management Bomgar 04/03/2018 $0.74 Francisco Partners Clearlake Capital Group, Guggenheim Lytx 04/05/2018 $0.70 Investments, GTCR, et al*
*HarbourVest Partners, Public Sector Pension Investment Board PAGE 7
Source: PitchBook Financial Services Deals
Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor
Atlas Merchant Capital, Cornell Capital, Talcott Resolution 05/31/2018 $2.05 Global Atlantic Financial Group, et al*
Drawbridge Realty 05/23/2018 $0.47 Undisclosed Investors NorthStar Financial Services Group, TA FTJ FundChoice 05/25/2018 $0.33 Associates Management
*Grupo Safra, Pine Brook, TRB Advisors
PAGE 8
Source: PitchBook Healthcare Deals
Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor Sound Physicians 06/28/2018 $2.15 Summit Partners
Analogic 06/22/2018 $1.10 Altaris Capital Partners Patricia Industries, Water Street Healthcare Sarnova 04/04/2018 $0.90 Partners
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Source: PitchBook Materials & Resources Deals
Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor The Waddington Group 06/29/2018 $2.30 Novolex Holdings, The Carlyle Group Appvion 06/13/2018 $0.36 Franklin Templeton Investments
Forever Oceans 05/18/2018 $0.00 Palapa Ventures
PAGE 10
Source: PitchBook Energy Deals
Top Deals 2018-Q2 Company Date Investment Value (Bil) Financial Sponsor Brazos Midstream 05/29/2018 $1.75 Morgan Stanley Infrastructure Partners
8point3 Energy Partners 06/19/2018 $0.97 Capital Dynamics
Birch Permian 04/09/2018 $0.77 Riverstone Holdings
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Source: PitchBook Energy Fundraising
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Source: PitchBook 799 9th Street NW, Suite 200 Washington, DC 20001
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