Deal activity levels fell by more than a third in Q3 2011 due to ongoing fears regarding the European debt crisis, according to the latest unquote” Private Equity Barometer, in association with Arle Capital Partners.

Year-on-year deal volumes also fell, though deal value was boosted compared to 2010 by a number of mega-buyouts completed in early 2011.

Across Europe, deal activity was down in Q3 compared to Q2, falling by 36% to just 187 deals. Volume was also down year-on-year, with 763 deals completed in the first nine months of the year, down 13% compared to 2010.

Value fell even more dramatically in Q3, down 49% to €14.8bn due to a lack or larger deals over the summer months. However, on a yearly basis total deal value has increased 15% to €58.3bn thanks to a number of sizeable transactions seen earlier this year.

The full unquote" Private Equity Barometer, produced in association with Arle Capital Partners, can be downloaded from our research centre.