Friday, August 30, 2013

PEU Investment Fees Rebound

Financial News reported on PEU fees earned by investment banks:

Figures to August 28 show investment banks have reaped income of $10.2 billion from private equity deals so far this year, the highest level since the same period in 2007 when revenue was $13.4 billion. 

JP Morgan reaped the highest amount of income from these deals, collecting $1.1 billion. Goldman Sachs is ranked second with $982 million, and Credit Suisse received $874 million in fees, according to the data provider.

Fees have been driven by high levels of activity from some of the largest buyout firms in the US. Apollo Global Management is ranked first by fees paid, Carlyle Group second and Bain Capital third. 

The figures include exits, new entry deals, and portfolio company M&A deals, as well as any related equity capital markets and debt capital markets loans, Dealogic said.

Top Ten PEU's are:

1. Apollo Global Management (US) - $607 million
2. Carlyle Group (US) - $485 million
3. Bain Capital (US) - $442 million
4. Blackstone Group (US) - $370 million
5. TPG Capital (US) - $342 million
6. 3G Capital Partners (Brazil) - $331 million
7. CVC Capital Partners (UK) - $318 million
8. Kohlberg Kravis Roberts (US) - $280 million
9. Advent International (US) - $248 million
10. Clayton Dubilier & Rice (US) - $219 million 

Best year since 2007, which had many frothy PEU deals.  What does that portend for 2014?