European mid-market growing in significance, says report

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In total, some 1,222 buyouts with an aggregate value of E83.045bn were completed in the E20-200m size range in the period Q1 1999 to Q3 2004, according to The European Mid-Market Overview, a report published by Initiative Europe. Three years of decline in both the volume and value of the European mid-market followed the high point of deal activity in 1999. As a percentage of all European buyout dealflow, however, the mid-market has increased consistently between Q1 1999 and Q3 2004. In 1999, just under 41% of all European buyouts were mid-market transactions. By 2003 the share had risen to 52% while in the first nine months of 2004, 57% of all completed buyouts have been mid-market deals. Although Continental European markets continue to grow in stature rapidly, the UK has historically dominated the European private equity market. Over the period 1999-Q3 2004, the UK & Ireland has been the dominant region in the European mid-market, accounting for 42% of deal volumes and 40% of the total value of the market. Turning to divestments, as secondary buyouts continue to be a popular alternative for exits, institutional investors are now the third-largest single source of mid-market buyouts, accounting for 19% of deals and 21% of the total value of the market. For further details on The European Mid-Market Overview please contact Rob Lamb on +44 1737 784247.