The number of companies receiving private equity investment fell by eight per cent in the second quarter of 2009, while the amount invested fell by 16 per cent to EUR3.9bn, according to
The number of companies receiving private equity investment fell by eight per cent in the second quarter of 2009, while the amount invested fell by 16 per cent to EUR3.9bn, according to data released by the European Private Equity & Venture Capital Association.
In the first half of the year EUR8.5bn has been invested altogether, 65 per cent less than in the previous six month period.
In terms of investment stages, buyout investments fell by 14 per cent to EUR1.6bn in the second quarter, growth capital fell by nearly half to EUR622m and venture capital fell by a quarter to EUR728m. The average investment size per company decreased by eight per cent, suggesting falling entry valuations.
By contrast, replacement capital more than doubled, driven by a small number of larger deals. In addition, buyouts of small and mid-market companies recovered strongly in the second quarter, up 24 per cent to EUR1.3bn. Small and mid-market buyouts now account for four-fifths of all buyouts by value, up from two-thirds in the same period of last year. More than half of all deals during the period were follow-on investments, compared with 44 per cent at the same time last year.
Meanwhile, fundraising bounced back 18 per cent in the second quarter to EUR3.2bn. Buyout funds led the gains with an increase of 28 per cent on the first quarter to EUR1.9bn, while the amount raised by growth capital funds more than doubled to EUR205m. However total funds raised in the first half of the year remain 86 per cent lower than in the second half of 2008.
The amount at cost sold by private equity firms fell by more than half from the first quarter, to EUR912m, although the number of companies exited fell by only 15 per cent.
