The total value of european private equity deals in 2010 totalled EUR71.5bn, and increase of 143 per cent on 2009, according to Candover’s latest Private Equity Barometer.
In the final quarter of 2010 there were 230 private equity-backed deals recorded with a value of EUR22bn, slightly down on the 235 recorded in the same quarter of 2009, but up 50% from EUR10.3bn in value terms.
The total number of buyouts increased for the third consecutive quarter, with Q4’s 101 deals making it the best performing quarter in 18 months in volume terms, and up 31% on the 77 buyouts recorded in the same quarter of 2009.
In value terms, buyouts fell slightly quarter on quarter, from EUR21.7bn to EUR20.6bn, due almost entirely to a modest slowdown at the top end of the market.
As a whole, 2010 was substantially up on 2009’s figures, with volume and value 43% and 169% higher respectively with 367 deals worth EUR63.1bn.
Mid-market deals, worth between EUR100m-EUR1bn, saw the most significant growth, with volume jumping 24% from Q3’s tally of 29 deals to 36. Value rose even more substantially by 60% from EUR7.2bn to EUR11.6bn. This equated to a 56% share of the buyout market overall.
The UK remained the most active market in volume terms with 23 deals completed during the quarter. From a value perspective, the Benelux region was the largest with transactions amounting to EUR5.2bn. The Nordic region also saw a large jump in value, almost doubling its Q3 total of EUR1.6bn to EUR3.1bn in Q4 with the EUR1.4bn acquisition of Visma accounting for the bulk of this increase.
“This final quarter Barometer is an interesting snapshot of buyout market sentiment. While deal values are down this quarter, volumes have increased, particularly so in the mid-market segment," says John Arney (pictured), managing partner of Candover Partners. "This return of the mid-market is reassuring – and hopefully confirms that Q3’s dip was down to market jitters.
The Benelux and Nordic regions demonstrated that there are plenty of sizeable opportunities to be tapped in these regions, with both posting a small number of deals but at much higher value than the high volume, low value deals in the UK.
As we move into 2011 we are likely to see an element of caution prevail until the economic situation becomes clearer. At that time, all the signs indicate that recovery in the European private equity sector will continue to accelerate – there is still a significant amount of equity looking for a home.”
