22/01/09
Q4 2008 Barometer
Please click here to download a pdf of The Barometer Q4, 2008
Total value of European private equity-backed transactions fell 59% in the final quarter of 2008 to €8bn, the lowest value since Q2 1997
Buyout values in the quarter fell further, by 61%
European buyout values for the full year were €73bn, a decline of 61% from 2007’s record levels
Preliminary figures released today in the Q4 2008 unquote” Private Equity Barometer* (published by Incisive Media and sponsored by Candover**, a leading European private equity house)
European Private Equity
- The total value of European private equity transactions fell to just €8bn in the final quarter of 2008. This represents a decline of 59% compared to the €20bn reported in the previous quarter. This resulted in a full year fall of 59% to €87bn compared to €198bn in 2007
- In volume terms, declines were more modest with 1,404 private equity transactions reported in Europe during the year, a fall of 14% compared to 2007. However, only 261 transactions were completed in the final quarter of 2008, by far the lowest recorded number over the year and a 32% decline compared to the prior quarter
Buyouts
- The total value of buyouts in the final quarter of 2008 reflects an even steeper decline than the overall statistics, with the value of European buyouts completed falling 61% compared to Q3 to €7bn. Volume fell 55% from 166 deals to 75
- For the full year, the total value of European buyouts competed was €73bn, a decline of 61% compared with the €175bn reported in 2007. Volumes fell 30% from 823 deals to 578. In value and volume terms, these represent the lowest annual totals since 2004
- Only one transaction was valued in excess of €1bn during the final quarter – the Magnum-led acquisition of Portuguese renewable energy utility Enersis
- In the UK, volumes over the final quarter saw an almost two thirds decline from 36 deals to just 13 while the value recorded a 93% drop from €4.4bn to €338m.
Commenting on the latest figures, Colin Buffin, Managing Director of Candover, said:
“The European buyout market has fallen dramatically and Q4 values were lower than at any time in the last decade. The worsening macro-economic climate and lack of availability of debt financing has prevented most private equity companies from completing larger buyouts, and it is now taking its toll on the mid-market too. As there is no prospect of the debt markets returning in the foreseeable future, the buyout market will continue to suffer.
“In the meantime, private equity companies are focused on their current portfolio and ensuring their investments are as well equipped as possible to ride out what looks set to be a long and sustained downturn.”
Ends.
*Figures for Q4 2008 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.