Private equity trends in the U.S. 1985-2015

Eric Garland DataLab

Private equity has become a major part of how companies are financed. In sectors ranging from retail to biotech, private equity firms remove the quarterly obligations of being listen on a public stock exchange. Management styles are often aggressive leading either to rapid expansion within that company’s industry, or unmanageable debt structures. (See Guitar Center or Sports Authority for examples.)

Looking at trends in private equity from 1985-2015, we see that the stronger the financial sector gets, the more excess capital is available to pool in these industry-disruptive funds.

Is your industry facing competitors financed this way?