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Private Equity Executives Survey 2011 - Executive Summary: Key Survey Findings

The Pulse of Private Equity - Spring 2011

EisnerAmper Intelligent Data (EisnerAmper ID) surveys private equity executives twice a year to obtain their views of their firms’ fund activity. 

Survey respondents shared their insight into market trends over three periods of time: results from Q1 2010, December 2010 through Q1 2011 and projections for first half of 2011 (1H 2011). Our findings can be summarized as follows: 

PE Firms Seek New Transactions While Fund Raising is Still Slow. Private equity firms have increased their activity level seeking new transactions. The PE teams’ time spent on looking for new transactions continues to rise with an even more robust outlook. The private equity executives’ view on fund raising shows their optimism for fund raising, however, the outlook for the full 1H 2011 is relatively flat as compared to the current activity level.

More Transactions are Foreseen with Other Private Equity or Venture Capital Firms. 60 percent of respondents expected more disposition/sales transactions with other private equity firms or venture capital firms in the first half of 2011 versus the first quarter of 2010. Public companies and institutional investors represent only 14 percent and 12 percent of anticipated transactions, respectively.

Even More Debt Financing Availability. Compared to Q1 2010, 67 percent saw an increase in debt financing availability during December 2010 through March 2011 and 83 percent anticipate an increased availability for the remainder of the first half of 2011 and beyond.

The LP/GP Relationship Continues to Have Increased Scrutiny. There has been a steady rise over the past two years in Limited Partners’ interest in due diligence related to private equity fund management, as well as management and incentive fees and other fund expenses. Private equity executives are keenly aware of this increased scrutiny. Transparency continues to be front and center.

Improving Portfolio Company Performance Has Never Been More Important. Holding onto to portfolio companies longer is a reality, and private equity fund management continues to spend an increased amount of their teams’ time on value and profitability enhancement.

Spring 2011

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