BY Richard Summerfield
Preqin's 'Private Equity Spotlight' report, released in December, highlights a number of the biggest trends in the PE space over the last 12 months.
One of the most notable features of the last year has been the drop in average holding periods for portfolio companies, from 5.9 years in 2014 to 5.5 this year. Back in 2008 it was 4.1 years. The year-on-year reduction in holding periods reflects the favourable exit conditions which have evolved. To date, there have been 1595 PE exits valued at $426bn, compared to $457bn in 2014, a record year for PE exits.
The alternative assets space has become a prominent sector in recent years. The industry had around $7.1 trillion worth of assets under management in Q1 2015, up from $5.5 trillion in 2012. Given its increased size and importance, it is essential that investors and fund managers understand industry trends, according to Preqin. as a result, key metric analysis is a vital tool.
Sovereign wealth funds have also grown over the last 12 months. In March, Preqin reported that their global AUM had risen more than $900bn to reach $6.3 trillion. This stunning level of growth has come in spite of increasing volatility in the oil and commodity sectors.