PE Tech Report


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UK targets retain appeal with global private equity investors despite Brexit uncertainties   

The latest Private Equity Market Snapshot (PEMS) report from S&P Global Market Intelligence shows healthy capital inflow into the Europe, Middle East and Africa (EMEA) region, with total General Partners (GP) investments rising by 14 per cent to EUR21 billion from 1 January to 15 March, 2019.

This is a positive indication for the region when compared to EUR18.4 billion capital deployed, across different sectors, over the same period in 2018.

There was a robust appetite to invest not only in the wider EMEA region, but the UK in particular. Despite the current uncertainties around Brexit, UK targets have maintained a strong position with global GPs, having received almost twice the amount of capital investments compared to the same period in 2018. Largely responsible for the rise in aggregate deal value were two mega-deals in the UK Real Estate sector. Undeterred by a fall in aggregate deal value, Information Technology (IT) sector retained its top spot with EUR5.4 billion worth of GP investments obtained through 329 deals. 

The report reveals the capital deployed into Benelux (Belgium, Netherlands and Luxembourg) has grown steadily each year since 2015, increasing by 50 percent from 2017 to 2018 to a total of EUR23.6 billion. The IT sector consistently led the way with 490 deals during the period of 1 January, 2014 to 31 December, 2018. It equated to 29 per cent of the total number of entry deal activities. The Netherlands was the driving force achieving 69 per cent of all IT deals.

Over the study period from 1 January, 2014 to 31 December, 2018, global insurance industry has seen a robust interest from private equity players, driving the markets to record highs last year. As more deals were closed in 2018, the value of closed deals soared to EUR12.6 billion, representing a remarkable 229 per cent increase over the average from 2014 to 2017. However, the same enthusiasm is not shared for the Insurance Technology (Insurtech) sector. EMEA headquartered Insurtech companies attracted only 18.4 per cent (EUR1.5 billion) of total GPs capital in this sector over the entire study period.   

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