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  "documentTitle": "Global Private Equity Report 2016",
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  "notes": "The slide combines qualitative market commentary with quantitative charts showing LBO debt volume/count and yield trends.",
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      "text": "Debt financing for LBO transactions has slowed as spreads increased in the second half of 2015.",
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      "text": "Global cost of debt (yield) by asset class",
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      "text": "Global volume of debt for LBO transactions: $200B",
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      "kind": "paragraph",
      "text": "Buy-and-build strategies gain in popularity. Under pressure to make high-stakes decisions about whether to ante up steep acquisition multiples for assets sold through intensely competitive auctions, more and more GPs are looking into buying businesses they know well—similar to companies already in their portfolios. PE firms have long resorted to buy-and-build strategies, using established portfolio companies as platforms to accelerate growth. Adding bolt-on acquisitions gives PE owners a lot of flexibility to steer their platform portfolio companies in promising new directions, enabling them to grow their core businesses or opening doors to new adjacencies.",
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      "text": "Trust, a California-headquartered developer and manager of real estate for the life science industry in the US and the UK, in a public-to-private conversion late last year. Real estate plays and buyouts in the computer and electronics industries dominated this list, accounting for seven of the top ten deals. Among the big buyouts, eight targeted US companies. Significantly, four of the nine deals exceeding $5 billion were buyouts in which LPs joined forces with GPs as coinvestors. Such partnerships mobilizing shadow capital from LPs are emerging as alternatives to the all-GP club deals of the past, a new way to bring big buyouts to fruition. More broadly, PE deal making in 2015 was an eclectic mix, reflecting the whims of opportunity and timing. Yet four distinct themes emerged that capture the year's unique combination of competitive pressures as GPs sought to find ways to deploy dry powder.",
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      "text": "Buy-and-build is especially well suited to today's PE environment, and the numbers from 2015 reflect this. Globally, the value of add-on acquisitions by PE-backed companies more than doubled to a record $267 billion in 2015, nearly matching the $282 billion invested in all buyouts during the year. Sizable acquisitions, such as Kraft's acquisition of Heinz in the food industry and Dell's acquisition of EMC in computing, dominated the buyout scene (see Figure 1.15). Business-cycle dynamics are an important factor, raising the popularity of buy-and-",
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      "kind": "source-note",
      "text": "Note: On left-panel chart, x-axis is year of credit issuance. Sources: Dealogic; PIMCO; Bloomberg; Merrill Lynch; S&P LSTA; S&P Capital IQ LCD; KPMG",
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      "text": "Figure 1.14: Debt financing for LBO transactions has slowed as spreads increased in the second half of 2015",
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