The Pulse of Private Equity – 11/1/2021

Add-ons now 73% of all buyouts

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It’s getting repetitive, but the buy-and-build strategy is becoming the dominant approach for private equity. According to PitchBook’s latest US Breakdown Report, add-ons are comprising 73.2% of all buyouts this year. In 2007-2008, at the height of the buyout boom, the percentage was hovering around 50%. The strategy has been around for many years—and we’ve been talking about it for many years—but 73% is a very high number. Eventually it will have to plateau, but not yet.