B2B deals draw $37 bln in Q2 dollar volume, topping new study

Business-to-business deals received the most investment dollars from sponsors in the second quarter, according to an upcoming study.

Overall investment increased for business products and services (B2B), information technology, healthcare, and energy, according to the new study from the Private Equity Growth Capital Council, which has not tracked industry sub-sectors in the past.

Investments declined in consumer products and services, financial services; also for materials and resources.

Total dollar volume for business products and services (B2B) ticked up to $37 billion, with a boost of $5.7 billion from the buyout of Indiana Toll Road Concession Company, which was led by IFM Investors.

Consumer products and services totalled $33 billion, down $4 billion from the first quarter. The $4.1 billion buyout of Life Time Fitness, valued at $4.1 billion, boosted the total. That deal was led by Leonard Green & Partners, LNK Partners, and TPG Capital.

“Consumer spending is expected to increase and stabilize later this year, which may make this sector more attractive to private equity investors,” according to the study.

Information technology drew $17 billion of investment in the second quarter, up from $14 billion in the previous quarter. The $3.6 billion buyout of Riverbed Technology by Elliott Management, Canada Pension Plan Investment Board, and Thoma Bravo weighed in as a major deal in the sector.

Healthcare investments totalled $9 billion in the second quarter, up from $7 billion in the previous quarter. The volume of private equity investment in energy rose slightly, with a greater number of deals.