Deal volumes in Q4 2011 hit their lowest levels since 1996, in a difficult final quarter for the private equity industry, according to the unquote” Private Equity Barometer, in association with Arle Capital Partners.

Across all deal types there were just 192 transactions recorded in the final three months of 2011, the lowest since Q4 1996. The value of deals was also down, dropping 39% compared with the previous quarter to €10.5bn, the lowest quarterly figure since Q2 2009.

However, despite the tough conditions in the final quarter, driven by subdued bank lending after an active first half and gloomy economic forecasts stemming from the eurozone crisis, yearly totals for 2011 held up somewhat better. Buyout numbers actually rose, up 6% to 450 compared with 2010.

Growth capital investments fell 23% year-on-year by volume to 425, while value dropped 36% to €5.2bn. Early-stage investments saw a modest decline on an annual basis, down 15% by volume and losing 22% of their value compared with 2010.

Overall, transaction volumes across all deal types fell by 11.5% to 1059 while total market value dropped 4.8% to €72.66bn between 2010 and 2011.

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