22/10/09
Q3 2009 Barometer
Q3 records largest quarterly figure for private equity since Lehman collapse, driven by a recovery in mid-market buyouts
- However overall market remains significantly below 2008 figures
Please click here to download a pdf of The Barometer Q3, 2009
Preliminary figures released today in the Q3 2009 unquote” Private Equity Barometer* (published by unquote” and sponsored by Candover**)
European Private Equity
- The total number of European private equity backed transactions increased to 257 deals in Q3 from 232 in Q2. This represents a rise of 11% and the first time deal numbers have increased in successive quarters since the second half of 2007. Deal value more than doubled to €9.6bn, compared to €4.6bn in Q2.
- Despite this rebound, the market still remains significantly below last year’s level, with volume and value down 39% and 78% respectively compared to the first nine months of 2008.
Buyouts
- The total value of buyouts in Q3 2009 was up for the second quarter in succession, with an increase of 135% producing a total close to €8bn.
This was largely driven by the mid-market, with activity levels for deals worth between €100m and €1bn seeing the largest increase. Compared to Q2, volume doubled from 10 deals to 21, whilst values rose 125% from €2.1bn to more than €4.8bn.
- Year to date comparisons, however, show the buyout market is 65% and 80% down in terms of volume and value respectively on 2008.
- The €1.7bn merger of boiler manufacturer Baxi with sector rival De Dietrich Remeha Group represented the largest transaction of the quarter and the first one this year worth in excess of €1bn.
- The UK maintained its pole position in terms of both volume and value, recording 22 buyouts worth collectively €2.7bn, representing rises of 29% and 109% respectively over the second quarter.
Commenting on the latest figures, John Arney, Managing Partner of Candover Partners, said:
“The improving fundamentals in the wider economy have seemingly begun to filter through to private equity investment levels. But while primary deal activity is on the up, the market still remains significantly below 2008 in both volume and value. It is encouraging to see growth, particularly in mid-market buyouts, but we believe the level of activity will remain suppressed until the flow of deals and available LBO debt picks up.”
Ends.
*Figures for Q3 2009 should be considered preliminary and are likely to increase as further deals come to light over the coming weeks.
**Candover means Candover Investments plc and / or one or more of its subsidiaries, including Candover Partners Limited as General Partner/Manager of the Candover, 2001, 2005 and 2008 Funds.
