Data & Analysis

Knowledge is power

The deal sourcing community is fragmented.

PE firms see 18% of their target market deal flow, per SPS data cited in Bain & Company’s Global Private Equity Report 2017 Annual Report.

 

The DOBR is an annual industry standard comparing a Sponsor’s market coverage against all Sponsors and peer groups. These statistics provide detailed insight into a firm’s deal sourcing strategy and helps clients gauge their performance individually, as well as compared to the industry.

2017 DOBR
The results of the 7th annual SPS DOBR indicate that PE firms see a median of 16.6% of their target market deal flow.

The 2017 edition was strategically revamped in several ways, including new statistics and market coverage charts. One prominent update to the 2017 edition of the SPS DOBR is its inclusion of market coverage details for Limited, Moderate, and Broad process deals. Including these market coverage statistics in the Report enables PE firms to determine if relevant intermediaries are inviting them to review opportunities with a minimum number of buyers, versus reviewing those broadly auctioned opportunities.

2016 DOBR

The results show that, on average, PE firms see 18% of their target market deal flow.

2015 DOBR

The results show that, on average, PE firms see 19% of their target market deal flow.

2014 DOBR

The results show that, on average, PE firms see 19% of their target market deal flow.

2013 DOBR

The results show that, on average, PE firms see 23% of their target market deal flow.

The perspective focuses on market trends and transaction in the mezzanine space and is released quarterly. It also provides data pertaining to transaction activity on a quarter-by-quarter basis going back to Q1 2012.

Q3 2017

As we enter the final stretch of the year, mezzanine activity was down 6% for the 12-month period ending June 2017 from 547 to 514. Furthermore, comparing Q2 2017 with Q2 2016, transactions were down 19% from 134 to 108. While market activity for the first and second quarter of 2017 is consistent, volume has decreased from its 2016 and 2015 levels. In the second quarter of 2017, 108 mezzanine transactions were completed and 66 (61%) involved a sponsor. Overall, 11.5% of new platform private equity investments for this period had a mezzanine component, compared to 15% of new platform PE investments in Q2 2016. Finally, as an interesting aside, the Healthcare sector was the most active for the quarter ending June 2017, followed by Services, Industrials, and IT.

Q2 2017

Centerfield Capital Partners provided both mezzanine debt and equity in the acquisition by Corridor Capital of Indo-European Foods, Inc. (“Indo-European”).

Q1 2017

The February acquisition of BestMark, Inc. (“BestMark”) by Generation Growth Capital was supported by senior debt from Bell Capital Finance and mezzanine financing from ExMarq Capital Partners.

Q4 2016

Canal Holdings provided senior subordinated debt and preferred equity to support the November acquisition of Micorp Custom Auto & Truck, LLC (“Micorp”) by Monhegan Partners. Micorp, located in Auburn, MA, wholesales and installs automotive aftermarket accessories.

Q3 2016

Ironwood Capital made a mezzanine debt investment in Farmington, CT-based Turbine Technologies Inc. (“Turbine”) in August. Turbine manufactures aerospace and industrial gas turbines

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

The SPS Harvest Report is an annual customized report detailing all PE portfolio companies that may be ready for exit. It is a great resource to proactively target relevant companies that may be in a position to sell in the near term.

June 2017

The June 2017 Edition highlights 4,600+ PE portfolio companies that were acquired between 2010 – 2014 that are potentially ready to exit!
Harvest Report: June 2017 Edition Summary
Harvest Report: December 2016 Edition Activity Update

December 2016

  • Companies reviewed: 3560+ PE portfolio
  • Originally acquired: 2010 – 2013

June 2016

  • Companies reviewed: 2,300+ PE portfolio
  • Originally acquired: 2011 – 2012

June 2015

  • Companies reviewed: 1,544+ PE portfolio
  • Originally acquired: 2010 – 2011

 

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