LPEQ Deloitte Listed Private Equity Cash Flow Compass Review to March 2012
Our latest LPEQ Deloitte Cash Flow Compass report shows that over the past two years, listed private equity companies and funds-of-funds have steadily increased investment in privately-held companies and have boosted commitments to private equity funds. Both these trends demonstrate the industry’s willingness to invest steadily amid wider equity market jitters.
Our analysis, based on LPEQ members’ quarterly data, shows the following major highlights:
- Funds-of-funds have posted cash in-flows in eight of the past nine quarters
- Corporate buyers have returned as major acquirers of private equity assets – with almost half of all exits in the year up to March 2012 going to trade buyers
- Balance sheets have strengthened over the past two years with a coverage ratio of 3.5 times, compared with 2.1 times in Q1 2010
- Listed private equity funds exposures have shifted away from the consumer discretionary and information technology sectors, and towards industrials and financials