Preliminary figures released yesterday (July 28, 2009) in the Q2 2009 Private Equity Barometer (published by unquote" and sponsored by Candover) reveal the following trends.
European private equity
The total number of European private equity backed transactions increased 38% over the second quarter from 3.5 bln. in Q1 to 4.8 bln. in Q2. Deal volumes remained similar, with 230 transactions in Q2 compared to 215 in Q1
Despite the rise in quarterly figures, the value and volume of transactions still remains significantly below comparable periods in 2008. Compared to the first six months of 2008, activity is off by 42% and value by 85%, while both figures also remain significantly down against what was already an extremely challenging Q4 2008, by 15% and 43% respectively
There were 56 buyouts during the quarter, up from 46, taking the total number of buyouts in the first half to 102. The value of buyouts almost doubled during the quarter to 4 bln. taking the total for the first half to 6 bln.
Despite ending the negative trend, these numbers are still a fraction of the comparable figures in 2008. Compared to the first half of 2008, volumes and values were down 70% and 87%, respectively
The increase in value during the second quarter is largely down to an increase in the number of deals valued in excess of 100 mln. There were 11 deals valued in excess of 100 mln. worth an estimated 2.4 bln., representing more than two thirds of the overall buyout value total. The largest of these was the secondary buyout of Wood Mackenzie for 637 mln.
Commenting on the latest figures, Marek Gumienny, Chairman of Candover Partners, said: "While it is encouraging to see some growth in volumes and values compared to the first quarter, the market for buyouts remains extremely tough. However, transactions are not impossible. The sale of Wood Mackenzie shows that buyouts are achievable for high quality assets with strong management teams and good growth prospects."