Private Equity Exits were down in 2011. PEGs are holding investments longer.
A recent study by Pitchbook and Grant Thornton has discovered that Private Equity groups are holding on to their investments for longer, 4.8 years is the median “hold” time as discussed in “Private Equity Exits Report: 2012 Annual Edition”.
Companies Cling to Cash
From the Wall Street Journal – Rather than pouring their money into building plants or hiring workers, nonfinancial companies in the U.S. were sitting on $1.93 trillion in cash and other liquid assets at the end of September. Cash accounted for 7.4% of the companies’ total assets—the largest share since 1959.
Small Business and Middle Market Outlook 2010
Forbes Insights, in association with CIT, recently published the report “U.S. Small Business and Middle Market Outlook 2010”.
Credit Standards, Loan Covenants, and Rate Spreads Eased in Q2
As banks saw increased competition for commercial & industrial lending, credit standards began to ease in the second quarter, according to the Federal Reserve. Of the senior loan officers surveyed in July, 12.5% indicated a relative easing of credit on large and middle-market borrowers (revenues in excess of $50 million), and 14.5% indicated a relative easing of credit for smaller firms, the first time credit standards have eased for small firms since 2006.
Bernanke: More Needed To Boost Small-Business Lending
Wall Street Journal article by Tom Barkley. Declaring small businesses as “central” to tackling unemployment, the Fed chief said not enough is being done to ensure that financially sound companies can obtain loans.
Harvard Study Says Angels Add Value to Start-ups
“Overall, the results suggest that the bundle of inputs that angel investors provide have a large and significant impact on the success and survival of start-up ventures,” the study says.
The study examined the performance of 130 firms that received interest from Tech Coast Angels and CommonAngels between 2001 and 2006. The samples include companies that ultimately won funding or were turned down.
New England Venture Capital Activity up 23%
There were 90 venture capital fundings in New England in Q1 2010, according to the PwC/NVCA MoneyTree™ Report based on data from Thomson Reuters. That represents a 23% increase over the same quarter in 2009. The recently published report details venture capital activity nationally for Q1 2010, as well as 2009 and prior years.
Cooley LLP Presents Report on Venture Financings in Q1 2010
In their most recent survey of venture capital financing transactions, the law firm of Cooley LLP notes that pre-money valuations were up in Q1, and there was a material increase in the number of financings with pre-money valuations north of $100 million.
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