Eighty-nine asset management deals were announced during the first half of the year, a record for number of deals in any half year, according to a report by Putnam Lovell NBF Securities.
Through June 30, buyers committed at least $13.5 billion of disclosed and estimated consideration to buy nearly $1 trillion of assets under management, the report said. By comparison, during all of 2000, the record year, buyers spent slightly more than $30 billion for control of $1.4 trillion of assets.
The median visible multiple for private-market fund management deals also rose during the first half for the first time since early 2004, Putnam Lovell said. The ratio rose to about 11-times earnings before interest, taxes, depreciation, and amortization, from 9.5, it said. Public-market multiples changed little, however, from their level of 14-times EBITDA.
Putnam Lovell noted that 20 of the first half's deals involved alternative asset managers, including hedge funds, real estate managers, and firms specializing in collateralized debt obligations.