Deal volume and aggregate value slide in Q4; Idinvest and Eurazeo going global following merger; and more… Here is your weekly round-up of essential industry news and analysis.
The European private equity market had a robust end to the year. While slowing somewhat, Q4 deal value finished above €40bn for the third consecutive quarter, according to the latest Unquote Private Equity Barometer, published this week in association with Aberdeen Standard Investments. And while deal volume lost some momentum, it remains at healthy levels. There were 434 deals registered in Q4, down 10% on the previous quarter. While the drop may seem steep, 2017 has been a particularly busy year, with the Q4 total only slightly below the average of 449 seen over the last 10 quarters. Value also moderated in the final quarter, falling 6% to €41.1bn, which still remains above the figure seen in Q1 2017. Deal numbers decreased in the buyout and growth capital segments in Q4, while the number of early-stage deals edged up. Read more
This week, Unquote spoke to Cerea Partenaire's president, Michel Chabanel, for its ongoing In Profile series. Since inception in 2004 with the launch of its mezzanine offering, Cerea funds have remained focused on the agricultural business and related sectors, with 40% of its deals today purely in food and beverage companies. The remaining 60% spans the food and beverage value chain, including equipment, packaging and logistics. The GP has branched out from its original mezzanine mandate over the years to include a buyout wing, set up in 2007, and a private debt arm, which launched in 2015. Chabanel says the firm prides itself in straddling the worlds of both trade buyer – with the knowledge and niche status that comes with that – and the sophistication of being a financial investor. Read more
The recent €310m merger of Eurazeo and Idinvest Partners has created a new force with €15bn in assets under management. Despite having had a successful business model to date, "after seven years it's normal to question yourself on the next move", says Idinvest managing partner Christophe Bavière. "Looking at the biggest GPs' best practices, a strong capital base and diversified LP base are key for growth. This is the direction we've taken." After their recent merger, Idinvest's and Eurazeo's investment committees will continue to operate independently. "It's essential for us, as well as our LP base, that the merger does not involve a change in governance," says Bavière. However, in terms of the specific changes the merger will bring for Idinvest, he says: "We will be supported by Eurazeo's permanent capital, and gain credibility to attract a more international LP base." Read more
That's all for this week's round-up – don't forget to check unquote.com for more in-depth news and analysis.
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Features editor, Unquote
Catch up on essential news and features from this past week with our round-up of industry analysis
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