Benelux Q3 dealflow remains subdued but value rockets

For the second consecutive year, dealflow in the Benelux region dropped in Q3 2015, according to unquote" data. A total of 23 transactions were recorded between July and September 2015, down from 35 and 31 during the same period in 2013 and 2014 respectively. This was offset by Q3 2015's bulkier record in terms of value: private equity dished out a combined €6.1bn's worth of deals in the period, far ahead of Q3 2013's €2.5bn and €4.06bn in Q3 2014. In spite of the steady climb, pre-crisis values such as 2006's €13.5bn are a distant memory.

The Netherlands housed most of the region's activity, with 13 deals worth an aggregate €5.2bn. The country also generated the bulk of deal value, having produced the TDR Capital-backed LBO of fleet manager LeasePlan in late July. The takeover, valued at €3.7bn, is the largest to be reported by unquote" in Europe so far this year and the Benelux's fourth biggest in the past decade.

The Netherlands also hosted the second largest transaction for Q3 2015, when Gilde Buy Out Partners teamed up with Parcom Capital and ABN Amro Participaties to de-list Dutch textile multinational TenCate for €675m. The move comes as experts report a comeback of take-privates among European GPs.

Courting controversy
Interestingly, the uptick in Dutch private equity activity went hand-in-hand with escalating controversy in the country. Over the summer, the Labour Party unveiled a plan for private equity houses, which have been under public scrutiny after media reports of debt-ridden portfolio companies. The measures, outlined in June, will undergo parliamentary debate over the next few months. Adding to the commotion was the announcement by PFZW, the country's second largest pension fund, that it would stop backing GPs failing to disclose fees by 2020.

Leaving the Dutch market, Luxembourg pulled its own weight during Q3 2015, with three buyouts in the €50-500m region. In line with the fund-focused nature of the local economy, two of the three deals – BlackFin's acquisition of RBS Luxembourg's fund arm and Astorg's purchase of SGG Group – took place within the segment. Meanwhile, the third transaction involved transport service Flash Europe, which passed from LBO France to Eurazeo PME in late July. Together with a renewed post-AIFMD fund domiciling scene, the Grand Duchy appears to have turned the page after the unease around the LuxLeaks scandal in 2014.

LeasePlan's record-breaking LBO aside, another of Benelux's Q3 2015 highlights was the robust venture market. Mirroring the increased focus on technology deals throughout Europe, Dutch online auctioneer Catawiki, raised the largest funding round in Benelux so far this year, collecting €82m in its series-C from Lead Edge Capital and existing backers.

Healthy sector
Given the historic strength of biotech deals in the region, venture capital appetite for these transactions continued unabated in Q3 2015. Leading the charts were Dutch cancer therapy developer Merus, backed with a €72.8m series-C in late August and Belgian regenerative tissue specialist Novadip, which secured €28m during its series-A in September.

The industry also attracted attention after Forbion Capital Partners announced it was set to harvest a 50x return via the $1.55bn sale of Dezima Pharma to corporate Amgen in September. Trade sales aside, Q3 2015 featured the IPO of haematology drug developer Kiadis Pharma on both the Amsterdam and Brussels stock exchanges. The VC-backed business was valued with a €166.4m market cap when it began trading in July.

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• Topics
• Benelux
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• Benelux
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