Private Equity

Buyout multiples highest in 20 years

Record comes despite percentage of debt used in buyouts falling after restrictions by US banking regulators

Tuesday 4 August 2015 at 07:42

The record comes despite a clampdown by US regulators on debt to finance buyouts
The record comes despite a clampdown by US regulators on debt to finance buyouts

Private equity firms paid a record 10-plus times earnings before interest, taxes, depreciation and amortisation for their buyout deals this year so far, the highest level in about 20 years, according to Standard & Poor's Capital IQ's LCD unit.

2015 was the first year that purchase price multiples reached, and exceeded, 10 times, according to data from LCD, which began tracking such numbers around 1995.