Overall European private equity deal volume rose by 11 per cent in Q2 2017, continuing the market’s rebound after a two-year decline that ended in Q1 2017, according to preliminary figures from unquote”’s Q2 2017 Private Equity Barometer, which is published in association with SL Capital.
The combined value of European private equity backed deals jumped 50 per cent to EUR42.9 billion, while the average deal value in Q2 2017 (EUR96.5 million) was up 35 per cent on Q1 2017 (EUR71.6 million).
Deal volume was the highest since Q4 2015 while deal value was the highest for a decade.
In terms of European buyouts, the aggregate value climbed 56 per cent to EUR35.8 billion in Q2 2017, while the number of deals rose to 200, up 31 from 169 in Q1 2017.
The net rise in dealflow was shared across each of the three deal value ranges (<EUR100 million, EUR100 million to EUR1 billion, and :EUR1 billion). The number of small cap (<EUR100 million) deals grew by 18 deals and value increased by EUR1.2 billion. Volume in the mid-range (EUR100 million-1 billion) rose to 56 deals with value increasing strongly by EUR6.4 billion. The large cap range (∶EUR1 billion) increased by one deal while value went up EUR5.3 billion.
Buyout volumes climbed in all regions except for the UK, where 48 deals were posted in Q2 2017, a drop of three from Q1 2017.
Aggregate deal value saw a similar pattern, rising in every region while the UK slowed slightly. The sharpest rise was in the Nordic region, where it jumped to EUR7.7 billion from EUR1.8 billion
Peter McKellar (pictured), Head of SL Capital, says: “We are seeing evidence in European private equity of strengthening activity in the regional economies. Confidence is increasing in continental Europe and private equity managers continue to find attractive opportunities. With mid-market buyout transactions leading the way, the total enterprise value and number of transactions in the quarter was the highest since late 2015. We remain hopeful of the upswing continuing.”
