latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/covid-19-dampens-us-private-equity-deal-making-fundraising-activity-in-q2-59543623 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

COVID-19 dampens US private equity deal-making, fundraising activity in Q2

Street Talk - Ep. 64: Coronavirus jumpstarts digital adoption

Street Talk Podcast

Street Talk - Ep. 63: Deal talks continue amid bank M&A freeze, setting up for strong Q4

Street Talk Podcast

Street Talk - Ep. 62: 'Brutal' outlook for oil demand offers banks in oil patch no relief

Amid Q1 APAC Fintech Funding Slump, Payment Companies Drove Investments

COVID-19 dampens US private equity deal-making, fundraising activity in Q2

U.S. private equity deal and fundraising activity slowed during the second quarter as the coronavirus pandemic and consequential lockdown took its toll.


SNL Image

Entry deal volume plunged 42.3% year over year to 932 announced transactions in the second quarter. This was also down 33.8% from 1,407 deals in the three months to March 31, according to S&P Global Market Intelligence data.

Gross transaction value for private equity entries totaled $26.09 billion, down 55.8% from $59.02 billion a year earlier. Quarter over quarter, gross transaction value fell 47.3% from $49.50 billion.

Add-ons also declined compared with the 2019 second quarter. A total of $18.62 billion worth of deals across 502 transactions were announced in the three months to June 30, compared with $118.40 billion across 913 transactions a year earlier.

Noting a bifurcation in the market, U.S. private equity firms are playing the long game when it comes to executing deals, with bolt-on transactions likely to be most abundant in the first wave of dealmaking.

READ MORE: Sign up for our weekly coronavirus newsletter here, and read our latest coverage on the crisis here.

SNL Image

Sector focus

The IT sector remained the market of choice for U.S. private equity firms, with 955 deals worth a total of $23.49 billion signed as of the end of the second quarter. The second and third most active markets for entries were the healthcare and industrial sectors, with 476 and 242 deals announced, respectively.

By gross transaction value, healthcare took the second spot at $15.40 billion, followed by communication services and industrials, at $13.73 billion and $8.41 billion, respectively.

SNL Image


The anticipated fundraising slump took full effect in the second quarter, when 225 funds closed having raised an aggregate $116 billion. This compares with a total $150 billion raised by 425 funds in the same 2019 period. Dry powder continued to grow, standing at $1.48 trillion at the end of the second quarter, compared with $1.41 trillion a year earlier, according to Preqin data.

Insight Partners' growth strategy platform, Insight Partners XI LP, was the largest fund to close in the quarter, bringing in $9.50 billion from investors. Francisco Partners Management LP's buyout fund, Francisco Partners VI LP, followed with $7.45 billion in capital commitments. Clearlake Capital Group LP raised the third-largest investment vehicle to close in the quarter, pulling in $7 billion for its special situations fund Clearlake Capital Partners VI.

Thoma Bravo LLC and Silver Lake Management LLC launched their buyout funds in the second quarter. Thoma Bravo Fund XIV LP is targeting $16.5 billion, and Silver Lake Partners VI is seeking $16 billion from investors. Clayton Dubilier & Rice LLC is also fundraising for its North America-focused buyout fund, Clayton Dubilier & Rice Fund XI LP, which has a $13 billion target, according to Preqin.

SNL Image