2018全球私募股权投资报告（英文版）_80页-7mb

2018 Global Private Equity Report Summary

Overview of Bain & Company's Private Equity Practice

Bain & Company is a leading consulting firm in the private equity (PE) industry, providing a wide range of services to PE firms and institutional investors. Over the past 15 years, the firm's PE consulting business has grown sevenfold, representing about 25% of its global business. Bain has over 1,000 experienced professionals working across the globe, and its PE practice is more than triple the size of the next largest consulting company in the sector.

The firm supports clients in various aspects of their PE operations, including:

• Deal generation: Developing investment theses and improving deal flow.
• Due diligence: Conducting commercial and operational due diligence, and planning post-acquisition strategies.
• Immediate post-acquisition: Creating strategic value-creation plans and aligning management with strategic goals.
• Ongoing value addition: Enhancing revenue and reducing costs, while refreshing strategies.
• Exit planning: Identifying optimal exit strategies, preparing selling documents, and prequalifying buyers.
• Firm strategy and operations: Developing differentiated strategies, improving fundraising, and enhancing organizational design.
• Institutional investor strategy: Helping institutional investors build best-in-class investment programs across asset classes.

The Private Equity Market in 2017: What Happened?

Investments: Searching for Value in a Crowded Market

In 2017, the global private equity market saw growth in investment value despite a decline in the number of deals. The total global buyout investment value increased by 19% to $440 billion, driven by a rise in large public-to-private deals. However, the number of deals only rose slightly, by 2%, to 3,077, marking a 19% decline since 2014.

• Add-on deals became a significant part of the market, comprising half of the total deal count but only 25% of total deal value.
• The average buyout deal size rose to $675 million, up from previous years.
• North America saw a 19.6% increase in deal value, largely due to large carve-outs and public-to-private deals.
• Europe experienced a 2% increase in deal count, with several large leveraged buyouts (LBOs) contributing to the rise in value.
• UK saw a 7% increase in deal value, despite Brexit uncertainty.
• Asia-Pacific was a bright spot, with buyout value rising 74% to $83 billion, driven by the $17.9 billion Toshiba Memory Corp. carve-out.

Dry Powder and Debt Markets

• Dry powder (uncalled capital) reached a record high of $1.7 trillion in December 2017.
• Debt markets were robust, with low-cost leverage available. The average debt/EBITDA multiple for large US LBOs reached six times, and some high-profile deals exceeded eight times.
• Covenant-lite loans became more common, with three-quarters of loan volume in the US and Europe being of this type.

Soaring Valuations and Competition

• Valuation multiples hit historic highs, with about half of all companies acquired priced above 11 times EBITDA.
• Corporate competition intensified, with large companies using acquisitions to achieve growth and strategic objectives.
• PE's share of M&A activity declined due to the dominance of corporate buyers, who had advantages like lower cost of capital and willingness to pay for synergies.
• Corporate venture capital (VC) activity grew, with the global value of deals reaching $51 billion in 2017, and the average deal size increasing.

Strategies for GPs in a Challenging Market

• Sponsor-to-sponsor deals became more common, with GPs actively screening other funds' portfolios for potential targets.
• Zombie funds (those that have not raised capital since 2008 and have not executed a deal since 2015) were identified as potential sources of deal flow.
• Public-to-private conversions increased in 2017, with total value rising to $180 billion, nearly double the previous year.
• Add-on strategies were increasingly used to build larger platforms from smaller acquisitions.
• Long-hold funds emerged as a trend, allowing GPs to take a longer-term approach to value creation.

Key Takeaways

• The private equity market in 2017 showed strong investment and exit activity, but faced challenges due to high valuations and fierce competition.
• GPs are adapting by focusing on add-on strategies, public-to-private conversions, and long-hold funds.
• The industry must find new ways to generate value and manage risk in a more competitive and uncertain environment.
• The role of institutional investors and corporate buyers is growing, forcing PE firms to become more strategic and efficient.

Spotlight on Retail Healthcare

• The retail healthcare sector is emerging as a growth opportunity, offering a mix of attractive targets and the potential for significant value creation.
• It provides a niche where PE can capitalize on the convergence of healthcare and technology, and where there is room for innovation and expansion.

Spotlight on Long-Hold Funds

• Long-hold funds are allowing GPs to take a more extended approach to value creation, giving them time to nurture growth, integrate acquisitions, and implement transformative strategies.
• This trend is opening up new horizons for the industry, especially in sectors where long-term investment is needed to realize value.

Conclusion

The 2017 private equity market was marked by strong investment activity and exit performance, but also by increased competition and high valuations. GPs are responding with more strategic and proactive approaches, including add-on strategies, public-to-private conversions, and long-hold funds. The industry is evolving to meet these challenges and is expected to continue delivering value despite the difficult environment.