Buyouts drove the momentum in the European private equity market in the first half of 2010, with activity levels rising 56 per cent to 167 deals from 107 deals in the first half of 2009, a report by Candover shows.
In value terms, buyouts quadrupled to EUR20.7bn in H1 2010, from EUR5.3bn in H1 2009.
Volumes in Q2 2010 rose from 95 to 72, with value totalling EUR11.2bn, up from EUR9.5bn in Q1.
The increase in buyouts has been driven by the EUR100m to EUR1bn mid-market segment, which recorded 32 deals in Q2 2010, up 68 per cent from Q1.
However, deals valued at more than EUR1bn remained scarce, with just one transaction in Q2 2010: the EUR1.1bn buyout of Irish aircraft leasing company Avolon by Cinven, CVC Capital Partners and Oak Hill Capital Partners.
Although the UK remained the most active market in Europe, other established markets such as Germany and the Nordic region recorded impressive gains.
John Arney, managing partner of Candover, says: “The first half of the year has shown a marked increase both in value and volume of deals, particularly in the mid-market. While the focus for a number of buyout houses over the last year has been on managing their existing portfolios, it is good to see the markets opening up and providing a competitive environment for new deals. This will have a knock-on effect on exit opportunities, which will further unlock the market as a whole.”
