THIS INFOGRAPHIC REPORT AND ALL ASSOCIATED CHARTS, PREPARED BY CASSEL SALPETER & CO. WITH DATA FROM PITCHBOOK AS OF JUNE 30TH, 2022, PROVIDES A TOP-LEVEL EXAMINATION OF PRIVATE EQUITY ACTIVITY IN FLORIDA. IT OFFERS IN-DEPTH INSIGHT AND DATA-DRIVEN ANALYSIS OF THE STATE’S PE TRENDS, WITH A FOCUS ON DEAL FLOW ACTIVITY. THIS REPORT INCLUDES ALL PE INVESTMENTS (INCLUDING BUYOUT, ADD-ON, GROWTH, AND RECAPITALIZATION), EXCLUDING REAL ESTATE INVESTMENTS, MADE INTO TARGET COMPANIES WITH HEADQUARTERS IN FLORIDA. A VIEW OF 1H 2022: FLORIDA PE DEAL REPORT DATA AS OF JUNE 30TH, 2022 A VIEW OF 1H 2022: FLORIDA PE DEAL REPORT
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Florida PE Deal Flow by Year
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While Florida PE deal activity slowed a bit relative to the banner year of 2021, 2022 is still on pace for a strong year compared with historical norms. One can assume that the rising interest rates are having a direct impact on the lowering multiples, in turn, volume, industries are experiencing.
2014222011012013 500400 600 700 8003002001000 20162021201820152019202020171H2022286296259207239183257351362370420625
TAMPA CENTRALNORTHEASTPANHANDLESOUTHEASTSOUTHWESTBAY
Florida PE Deal Flow by Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 100%90%80%70%60%50%40%30%20%0%10% 2021 20221H
The Southeast has steadily remained the region with the highest number of deals in any given year, accounting for 38.4% of deals in 1H 2022. The Central and Tampa Bay regions followed with 23.1% and 20.7% of total Florida PE deals, respectively. The Southwest and Northeast regions both decreased a couple of percentage points in the first half of 2022, accounting for 7.9% and 5.8%, respectively. As is typical in our historical reports, the Panhandle had the least amount of Florida PE deals, accounting for 4.1% of the total.
Florida PE Deal Flow by Quarter 200500 202120202019201 82017201 6201 5201 4201320122011 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 132 53 60 45 83 53 36 86 69 60 71 74 62 58 51 81 57 70 86 60 88 89 78 109 81 98 99 89 94 88 108 72 78 162 96 80 65 56 50 50 28 125 149139159178100150 2022
The first half of 2022 was in line with the first half of 2021 in terms of the number of Florida PE deals closed. It is likely that many deals that were negotiated at the end of 2021, closed in the first half of 2022. It will be interesting to see if the numbers remain steady for the second half of the year, although we expect them to slightly diminish.
Florida PE Deal Flow by Type
As in prior years, Add-on’s accounted for the majority of Florida PE deal activity in the first half of 2022, with approximately 62% of total Florida PE deal activity. This is a slight increase over previous years which typically see numbers in the mid-50% range. PE Growth/Expansion and Buyout/LBO accounted for approximately 21% and 14%, respectively. While PE Growth/Expansion remained stable in comparison to previous years, Buyout/LBO percentage decreased from approximately mid-20% to the 14% it saw in the first half of 2022.
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 RECAPITALIZATIONLEVERAGEDADD-ONPLATAFORMCREATIONPEGROWTH/EXPANSIONBUYOUT/LBO100%90%80%70%60%50%40%30%20%0%10% 2021 20221H
B2B remained in line with previous years’ reports, leading the pack and accounting for approximately 37% of total Florida PE deals. Interestingly, B2C, Healthcare, and IT each accounted for approximately 17% of the total Florida PE deals. While this is a consistent percentage for B2C, IT has gradually increased, and Healthcare slightly decreased in total Florida PE deals since we began analyzing the data. Financial Services accounted for approximately 10%, while Materials and Resources accounted for approximately 3%. Energy brought up the rear with only one deal in the first half of 2022, which accounts for less than 1% of the total Florida PE deals.
Florida PE Deal Flow by Sector 2011 2012 2013 2014 2015 2016 2017 100%90%80%70%60%50%40%30%20%0%10% MATERIALS & RESOURCESITHEALTHCAREFINANCIALSERVICESENERGYB2CB2B 2018 2019 2020 2021 20221H
Flo rid a Buyout s v s. Add- o n s As discussed previously in this report, Add-on’s saw a fairly significant increase in percentage point in Florida PE deal activity in the first half of 2022, accounting for approximately 82% of control investments. 454035302215000015000500000 876543210%0%0%0%0%0%0%0%0%160 184 20598 84206 1102335981 6213511978 50101 79153 96137 88 20221H2011 2012 2013 2014 2015 2016 2017 B U Y O U T / L B O A D D O N A D D O N % 2 0 1 8 2 0 1 9 2 0 20 372131 2 0 21 67.6% 67.7% 58.8% 68.5%66.9% 60.4% 82.1% 67.9%65.9% 71.0% 74.0% 57.9% 35 90 %
PE-Backed Flo r i da C omp a n i e s Florida PE-backed company inventory continued to grow, with an additional 18 (net) new Florida PE-backed companies. This annualized growth is in line with the previous year which saw a net 48 additional Florida PE-backed companies. 2015-1H 2000-2008Total2009-20142022YEAROFINVESTMENT 0 420000600800 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20221H 90 103 119 133 151 189 242 276 282 309 328 360 370 522 577 625 391 404 435 480 500 90 Pre-2000 643
Fl o rid a PE E xi ts b y Ty p e Corporate Acquisitions has once again taken the lead (albeit slight) in the primary exit route for Florida PE deals in the first half of 2022. Globally, the SPAC and IPO market has stalled significantly, which is also reflected in our Florida data, with IPOs only accounting for one exit in the first half of 2022. 10090 Corporate Acquisitions Secondary Buyouts IPO 40302010050607080 20221H20122011 2013 2014 2015 2016 2017 2018 2019 2020 2021 12 31 24 27 34 44 38 10 21 22 16 23 31 31 3234 6131 4234 333552 2 3 4 4553 1 9 4 4 1 62 4
Fl o ri d a - Based PE F i r m s Once again, the number of financial sponsors with headquarters in Florida continued to skyrocket, with an additional 21 Florida-based PE firms since year-end 2021. This growth over the first six months of the year is more than any full year growth we have seen since we began analyzing the Florida PE data. It will be interesting to see where the full year growth ends in our next report. 40302001050607080 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 201 9 2020 79 56 2021 20221H 10090110120 47 4137 343230 72 95 113 140130 2 0 1 1 134
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This report includes companies headquartered in Florida that are in part or in whole backed by PE firms.
This report includes all PE investments (buyout, growth, recapitalization, and add-on), excluding real estate investments, made into target companies, with headquarters in Florida. Only investments made directly by private equity firms or their portfolio companies are counted. Buyout deals are defined as transactions in which the PE investors receive controlling ownership stakes in the target companies. Growth deals are defined as minority investments in target companies. Add-on deals are defined as acquisitions by companies with private equity backing.
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This report includes PE firms with headquarters in Florida that were either actively investing or raising funds during the reported periods.
Cassel Salpeter & Co. is a Florida based boutique investment banking firm focused on providing independent and objective advice to middle market and emerging growth companies.
FLORIDA-BASED PRIVATE EQUITY FIRMS
PRIVATE EQUITY DEALS
FLORIDA-BASEDPE-BACKEDCOMPANIES