Primary deals are playing an ever more important role in the private equity marketplace, according to drxDATA, the Drax proprietary data platform.
The proportion of primary deals taking place continued to rise in 2018 compared to 2017, which itself was an increase on the previous year.
As a result primary deals now account for almost half the total number of deals taking place, showing that there is still a very high level of confidence amongst both investors and businesses despite the uncertain economic climate.
The total number of deals taking place during 2018 remained robust despite the difficult climate, showing a decline of 11.8% on the previous year.
The number of deals per investor also increased as consolidation of funds in the market delivered greater buying power to a more concentrated group of investors.
Commenting on the figures, Samuel Robberts, Head of drxDATA said: “The large number of exciting new companies coming into PE for the first time, as shown by the increased proportion of primary deals, is a hugely positive boost for the private equity market. It shows that despite the uncertain economic climate it is still very much business as usual for both investors and companies which seek their support.”
He added: “Although the total number of deals taking place in 2018 has fallen compared to 2017, there is strong evidence that the underlying market remains healthy and robust, with investor confidence still extremely positive about the prospects that lie ahead.”
drxDATA is at the forefront of leadership analytics within the portfolio companies of private equity. We work for both the investor and the portfolio company leadership team to develop actionable insights both pre and post deal. Supported by our proprietary technology and data we help our clients maximise their returns.
Drax lead: Sam Robberts
Head of drxDATA
Tel: 0203 949 9565