
French dealflow hit record high in 2016

French private equity enjoyed another busy year in 2016. After years of failing to exceed UK dealflow, the country finally clinched the top spot of the European league table in buyout volume. Alice Tchernookova reports
France was home to 166 private-equity-backed buyout transactions in 2016, against 163 in the UK & Ireland. The country commanded as much as 23% of the total deal volume of our regions in 2016, while the UK & Ireland amounted to 22%. Value-wise, however, France could not match the DACH region, whose contribution to European buyout activity in terms of value came to 22% with €25.8bn of aggregate value, slightly ahead of France with 21% and €24.7bn.
The economic situation in France, however, is still likely to be on the mind of investors despite the hike in activity. While France's GDP is expected to rise by 1.4% this year, GDP per capita has been consistently decreasing over the last 10 years, in addition to a public debt level now nearing 100%. These are challenges that the next administration will certainly have to address.
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