View all insights
image

Dislocation in Western Private Equity Markets.

CEPRES released their latest analysis this week showing that recently the US buyout market is driven by revenue growth, whereas in Europe buyout pricing is driven rather by operating income.

The analysis used the CEPRES PE.Analyzer investment decision platform to analyze over $12 trillion of PE transactions to illustrate the disparity of buyout deal pricing drivers between North America and Europe and the higher end of the market versus the lower. The analysis shows US Buyout/Growth deals in the top quartile are priced with the highest premium paid for revenue since 1999, while EBITDA multiples are steady. Conversely in Europe, top quartile Buyout/Growth deals are paying a premium for operating income reflected in higher than normal EBITDA multiples, while revenue multiples are steady.

Download full report to learn about:

• US Buyout / Growth Pricing – EBITDA Multiples
• Europe Buyout / Growth Pricing – EBITDA Multiples
• Europe Buyout / Growth Pricing – Revenue Multiples

Dataset
Article

Read next

image

Building a Better Private Market Risk Factor Model

CEPRES and Qontigo are developing a suite of factor risk models that provide broad coverage of the private asset space in Axioma Risk, Qontigo’s enterprise risk management platform.

image

Value Creation: Everything You Need to Know in 7 Minutes Or Less

We often hear about value creation when talking about growth equity and buyout investing. For these strategies, GPs usually deploy a “hands-on” approach to achieve value-add or value creation.

image

Private Equity Fund Strategies

In the early days of this industry, private equity was exactly what it sounds like: capital from private investors went to private funds, which then invested in private companies. Private equity was easy and straightforward.

Client Exclusives

Private credit: Spotlight on deals — the winners and losers & bounce back from the crisis

Read more
image

Navigating Private Debt: A Deep Dive into Historical Risk and Returns

Read more
image