Examining financial and operating metrics offers valuable insights into private equity markets and how strategies are executed by private equity managers.
Derived from the data of approximately 8,000 US portfolio company investments acquired by private equity firms from 2000 through 2022, this annual report provides a comprehensive analysis of our observations on key metrics including purchase price multiples, leverage multiples, revenue growth, earnings (EBITDA growth), and earnings (EBITDA) margins. It allows for a comparison between private and public companies across time, industry sector, and company size. The report also includes analyses of approximately 2,800 realized private equity investments, assessing revenue and EBITDA growth, and changes in leverage and valuations during PE ownership
Delve into our private equity operating metrics analysis that not only illuminates the fundamental levers and value drivers in private equity, but also explores a risk and return comparison between private equity and public equity.