25/01/10
Q4 2009 Barometer
Please click here to download a pdf of The Barometer Q4, 2009
Q4 volumes and value of private equity-backed deals falls by 10% and 8% respectively
Buyouts grow in volume for third consecutive quarter in Q4 while value held at Q3 levels
European buyout values for the full year were €23bn, a decline of 68% from 2008
European Private Equity
- In the final quarter of 2009, there were 231 private equity-backed deals recorded, a decline of 10% against Q3 2009 (258 transactions). In value terms, transactions for the quarter were €10bn, down 8% compared with €11bn in Q3 2009.
- The full-year figures remained significantly below 2008 with a 34% fall in the volumes of deals to 937, and a fall of 66% fall in value to €29bn.
Buyouts
- The volume and value of European buyouts in Q4 2009 remained broadly similar to the previous quarter. In total, there were 77 buyouts in Q4 2009, compared to 71 in Q3 2009, totalling around €9bn in each case.
- For the full year, the value of European buyouts totalled €23bn, down 68% from €72bn in 2008 and 88% down on the record €187bn recorded in 2007. Year on year volumes fell by 57% from 586 to 253 deals.
- Two transactions exceeded €1bn during the quarter: EQT’s €2.3bn buyout of Springer Science & Business Media from Candover and Cinven and Apax’s €1.1bn acquisition of ICG-backed clinical trial logistics business Marken.
- The UK remained the most active market in Europe in volume terms with 25 deals. In value terms the DACH region was the largest at €3.7bn, with two thirds of this accounted for by the Springer buyout.
Commenting on the latest figures, John Arney, Managing Partner of Candover, said:
“The European buyout market remains in the doldrums, but there are early signs of a recovery underpinned by rising equity markets and the opening up of debt markets, albeit at steep prices.
Whilst it is difficult to predict the outlook for 2010, anecdotal evidence indicates that many PE firms are busy working on new investment opportunities and intuitively we should begin to see a stream of attractive post-recession buyouts emerging during the year. However with asset prices riding high, bargains may be few and far between. A number of firms are also preparing to hit the bumpy fund raising track, and I would anticipate the flow rate of exits to pick up this year.
All in all, this should lead to increased activity across the market during the months ahead."
Ends.
*Figures for Q4 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 1997, 2001, 2005 and 2008 Funds.
