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Top-heavy quarter masks strong year for small cap deals says Q4 2017 unquote” Private Equity Barometer

Overall European private equity deal volume cooled in Q4 2017 compared to the previous quarter, dropping by 10 per cent to 434, according to preliminary figures in the Q4 2017 Private Equity Barometer, published by unquote” in association with Aberdeen Standard Investments.

The combined value of European private equity backed deals slid 6.0 per cent but remains well above the average of the last 10 quarters
 
Average deal value in Q4 2017 was EUR94.7 million, up 4.9 per cent on the EUR90.3 million posted in Q3.
 
The aggregate value of European buyout deals edged down to EUR35 billion, 9.8 per cent lower than in Q3. The number of deals declined to 196 in Q4, a fall of 17 per cent.
 
Dealflow dropped in each deal size range (<EUR100 million, EUR100 million-EUR1 billion, and ≥EUR1 billion). The number of small cap (<EUR100 million) deals fell to 138 reaching its lowest level since Q4 2016. Volume in the mid-range (EUR100 million-1 billion) decreased to 50 deals from 54 with value also falling to EUR11.8 billion. The large cap range (≥EUR1 billion) increased by three deals while value climbed to EUR17.8 billion
 
There were 869 buyouts worth EUR138 billion in 2017 compared with 734 deals worth EUR113 billion in 2016
 
DACH was the only region where dealflow rose. Aggregate deal value more than doubled in France meanwhile, while it also climbed in Benelux and the Nordic region.
 
Graham McDonald, Head of Global Private Equity, says: “Despite ongoing political headwinds Q4 2017 deal value finished above EUR40 billion for the third consecutive quarter evidencing a strong robust finish to a busy 2017. The UK continues to be the busiest market with positive levels of activity in DACH, the Nordics and France.”
 

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