Investors in U.S. buyout funds raked in a record amount in distributions last year, according to a new report.
Our question for you this week is whether you think the good times will continue. Take our quick poll.
Cambridge Associates reported on Monday that limited partners received $93.6 billion from U.S. buyout funds in 2011, which was the largest annual amount the research firm has recorded since it began tracking the data in 1986.
“The record distributions likely reflect the long-awaited completion of realization events delayed largely due to the recession and buoyed by active M&A and IPO environments in 2011,” Andrea Auerbach, head of Private Investment Research at Cambridge Associates, said in a prepared statement.
How you answer this week’s poll question likely depends on whether you believe the exit markets have been strong enough in the first half of the year to make up for what many believe will be a slow second half.
Some data points to consider:
Twenty-two buyout-backed companies went public last year, raising more than $14 billion in proceeds, compared to 32 buyout-backed IPOs that raised $7.5 billion in 2010, according to Thomson Reuters (publisher of peHUB). So far this year, 19 buyout-backed companies have gone public, raising $4.2 billion.
On the M&A front, 236 buyout-backed companies were acquired last year, including 82 for a combined disclosed value of $43.8 billion, according to Thomson Reuters. That was a slight increase from 2010, when 228 buyout-backed companies were purchased, including 87 for a combined disclosed value of $42.3 billion.
As of June 11, there have been 101 acquisitions of buyout-backed companies, including 37 for a combined disclosed value of $19.6 billion.
With all of that in mind, do you think LPs can expect record distributions to continue from U.S. buyout shops this year? Take our quick poll.
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