DATA AS O F J U N E 3 0 T H , 2 0 2 0

A VIEW OF 1H 2020: FLORIDA PE DEAL REPORT

THIS INFOGRAPHIC REPORT AND ALL ASSOCIATED CHARTS, PREPARED BY CASSEL SALPETER
& CO. WITH DATA FROM PITCHBOOK AS OF JUNE 30TH, 2020, 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.
 Florida PE Deal Flow by Year

2009
133
20 10
180
201 1
187
2012
237
2013
211
2014
258
2015
287
2016
285
2017
326
2018
340

327 2019

1H 2020
133
0 50 100 150 200 250 300 350

As we have noted in prior reports, all data is preliminary as data reported generally lags behind actual activity. Despite the
ongoing COVID-19 pandemic, surprisingly, there has been no slowdown in Florida PE deals completed in the first half of
2020. In fact, 1H 2020 even surpassed our initial reported 1H 2019 Florida PE deal count of 127*.
*The initial and final reported numbers vary due to a lag in activity reported during the initial report.
The final reported 1H 2019 deals, as seen in the PE Deal Flow by Quarter chart, is 172.
 Florida PE Deal Flow by Region

100%

90% TA M PA B AY

80%
SOUTHWEST
70%

60% SOUTHEAST

50%
PA N H A N D L E
40%

30%
NORTHEAST
20%

10% CENTRAL
0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H
2020

Southeast Florida remains the region with the most Florida PE deal flow, accounting for approximately
45% of the total Florida PE deals in 1H 2020. The Tampa Bay and Central regions followed with
approximately 18% and 14%, respectively. The Southwest accounted for approximately 11%, while the
Northeast and the Panhandle both accounted for less than 10% of total Florida PE deals in 2020.
 Florida PE Deal Flow by Quarter

100 95 95
92
89 90
90
85 85
82 81 82 80
80 80 79
80 76
71 71 70
70 66 66 67 67
61 61 59 60 62
60 58
54 53 53 54 53
51 52
50
50 47 45
41 41 41
40 38
34
31
30 27 29

20

10

0
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

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H
2020

1H 2020 started out strong with 80 Florida PE deals completed in 1Q, significantly higher than past data
we have seen in initially reported data for 1Q. 2Q 2020 is also in line with previous initial reported data,
which is surprising given the unusual circumstances surrounding 2020 and the second quarter. It will be
interesting to see if the second half of the year also remains consistent.
 Florida PE Deal Flow by Type

100%
P L AT F O R M C R E AT I O N
90%

80% G R O W T H / E X PA N S I O N
70%
RECAP
60%

50%
ADD-ON
40%

30% BUYOUT/LBO

20%

10%

0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H
2020

Add-ons have consistently been the dominant type of Florida PE deals, accounting for
approximately 59% of total Florida PE deals in 1H 2020. Buyout/LBO and Growth/Expansion
(i.e. minority) accounted for approximately 22% and 17%, respectively. Platform Creation and
Recap each accounted for less than 1% of total Florida PE deals in 1H 2020.
 Florida PE Deal Flow by Sector

100%
M AT E R I A L S &
90% RESOURCES

80% IT
70%
H E A LT H C A R E
60%
FINANCIAL
50%
SERVICES
40% ENERGY
30%
B2C
20%

10% B2B
0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H
2020

While B2B remained the dominant sector for Florida PE deals, its margin has narrowed compared to previous years.
This is the first time, since we began tracking Florida PE deals, that B2B has accounted for less than 30% of total
Florida PE deals. The Healthcare and IT sectors also made a big jump and both surpassed B2C in 1H 2020,
accounting for approximately 23% and 20%, respectively. B2C accounted for approximately 17%, while the Financial
Services, Materials and Resources, and Energy sectors each accounted for less than 10% of total Florida PE deals.
 Florida Buyouts vs. Add-ons

70.6% 69.0% 69.5%

300 68.6% 67.0% 73.1% 80%
66.9% 64.8%
62.2%
57.7% 60.5% 70%
250 60.3%
60%
200

191
50%

178

178
149
150 40%

138
118

139
30%
103
85

82

100
20%

79
70

50

94
84
81
77

80
10%

78
60

58
56

51
32

29
0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H
2020
BUYOUT/LBO ADD-ON ADD-ON %

In 1H 2020, Add-ons accounted for approximately 73% of all control investments, a slight increase over recent
years. As we have seen in prior reports, the first half of the year sees a higher percentage of Add-ons, and then
ultimately levels out around mid-to-high 60% by year end. It will be interesting to see if COVID-19 plays any
role in causing Florida PE firms to focus more on building out platforms in their portfolio rather than making
large investments into new businesses.
 PE-Backed Florida Companies
600

525
515

500 484
454

409
400 386
361
340
328
298
300
283 YEAR OF
259
254 INVESTMENT
227
2014-1H 2020
200
178
146 2007-2013
128
116 2000-2006
101
90
100 77 PRE-2000

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H
2020

PE-backed Florida company inventory stayed pretty steady in 1H 2020, with only a slight increase of 1.9%
from year-end 2019. The aging company inventory acquired between 2007 and 2013 is currently at
approximately 17%, with the majority (approximately 80%) acquired between 2014 and 1H 2020. 1H 2020
PE-backed Florida company inventory saw a significant decrease from our previously reported year-end
2019 where there was a total of 632 PE-backed Florida companies.
 Florida PE Exits by Type

90
2
3
80
3
70

35
2

37
60 3

35
4 2
50 6

32

32
26
28
23
40

17
5
1
14

30
1
12

49
44

39
12

20

33

32

32
30
31

28

10
22
21

10
15

9
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H
2020
Corporate Acquisitions Secondary Buyouts IPO

Corporate Acquisitions and Secondary Buyouts were fairly even in choice of exit route in 1H 2020, consistent with
2019. As seen in previous reports, this data seems to be consistent in its inconsistency of flipping back and forth
between the primary exit route for Florida PE deals.
 Florida-Based PE Firms
90

88
80
79
70
72

60

56
50

47
40
41
37
30 34
32
30
27
20

10

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H
2020

The number of PE firms with headquarters in Florida saw another significant increase in 1H 2020, with
an additional 9 Florida-based PE firms since year-end 2019 and a CAGR of approximately 13% from
2010 through 1H 2020. This increase is similar to the jump we saw in 2018; it will be interesting to see
the final number of PE firms with headquarters in Florida at year-end 2020.
 METHODOLOGY

PRIVATE EQUITY DEALS FLORIDA-BASED PRIVATE PE-BACKED

EQUITY FIRMS FLORIDA-BASED COMPANIES
This report includes all PE investments
(buyout, growth, recapitalization, and add-on), This report includes PE firms This report includes companies
excluding real estate investments, made into with headquarters in Florida that headquartered in Florida that
target companies, with headquarters in Florida. were either actively investing or are in part or in whole backed
Only investments made directly by private raising funds during the reported by PE firms.
equity firms or their portfolio companies are periods.
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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