PE exits touch $ 203 bn globally in 2010: Preqin

NEW YORK: As valuation of companies have improved with recovery in the stock market, a number of private equity (PE) players are offloading their stakes worldwide. These exit valuations have shot up nearly three-times in the year 2010 to USD 203 billion, according to a report.

According to a research firm Preqin, 811 PE-backed exits occurred in 2010, with an aggregate exit transaction size of USD 203 billion. This is almost three times the aggregate exit value seen in 2009 at USD 73.6 billion.

"End of year results suggest the private equity deals sector has recovered following the financial crisis, with both the value and volume of deals and exits returning to, or exceeding, pre-crisis levels," the report noted.

Market persons said years would be good for PE players in terms of offloading their holdings in companies.

The month of December witnessed some of the biggest exit in PE, wherein Cerberus Capital Management made a USD 6.3 billion profit through selling its stake in Chrysler Financial Corp and Carlyle Group sold stake in HCR Manor Care Inc for USD 6.1 billion.

Besides, the fourth quarter of the calender year 2010 saw 265 exit worth USD 71.8 billion - the highest quarterly figure on record.

Interestingly, the amount raised by PE firms in 2010 is almost equal to the aggregate exit value seen in the year. In 2010, 2,171 buyout deals worth USD 204.9 billion announced.

The largest deal announced during 2010 was the USD 5.3 billion acquisition of Del Monte Foods Company by Kohlberg Kravis Roberts, Vestar Capital Partners and Centerview Partners.