The number of European private equity-backed buyout deals declined by 24 per cent in the second quarter of 2015, from the 392 transactions seen in the previous three months to 296 transactions.
That’s according to the Q2 2015 unquote” European Private Equity Barometer, published by unquote” in association with SL Capital Partners, which reveals that combined deal value rose by 115 per cent.
At EUR147 million, the average deal value in the second quarter was 185 per cent higher than that of the previous quarter.
]On an annualised basis, the 12 months to Q2 2015 saw a movement towards larger deals; total deal value increased by 29 per cent, while total volume slipped by 8 per cent (as compared to the 12 months to Q2 2014)
Deals increased to 131 in the second quarter – an increase of nine from the 122 deals completed in the first quarter of 2015.
Aggregated value also increased markedly – rising by 144 per cent from the previous quarter’s total of EUR16.6 billion, to EUR40.7 billion
In Q2 2015, the small-cap segment was the only segment to register a decline in volume and value, a 10-deal decline, with the number of sub-EUR100m buyouts falling from 82 (EUR3.27 billion) to 72 (EUR3.26 billion).
DACH region and Benelux were the only two areas to register a decline in total deal volume, accounting for 9 per cent and 13 per cent, respectively, of all European private equity-backed buyouts in the second quarter.
In regional terms, France recorded the steepest increase in deal numbers – up 53 per cent, from 19 to 29 deals. Total deal value tripled, from EUR2.5 billion to EUR7.5 billion
Commenting on the figures, Peter McKellar (pictured), Senior Managing Partner of SL Capital Partners, says: “The European private equity market as a whole saw a decline in deal flow volumes, but a substantial increase in the total enterprise value of transactions announced in Q2 2015. Large cap and middle market transactions helped buyouts to their highest total value for over 10 quarters. It appears that the core European buyout market continues to offer managers attractive investment opportunities. Against this background, we remain positive on the medium term outlook.”
