Nordic deal activity stumbles in Q3

John Bakie
02 November 2011

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Activity in the Nordic region was sharply down in the third quarter, mirroring activity in many parts of Europe, according to the latest unquote” Nordic Private Equity Index, published in association with KPMG.

Despite the relative strength of banks in the region, the impact of the Sovereign debt crisis, combined with the usual summer lull has seen deal volume and value plummet in the three months to 30 September. Just 14 buyouts were recorded in the quarter, down 46% quarter-on-quarter, while total value halved to €2.6bn over the same period.

Early-stage and expansion activity declined for the second consecutive quarter, falling to just 13 deals in Q3, down from 22 in Q2 and 37 in the first quarter. Sweden's venture scene was particularly badly hit, recording its lowest quarterly volume since 2004 with just five investments.

Professionals in the market have also adjusted their opinions, with more now expecting deal activity to remain static at the lower end of the market, while the number of larger deals is expected to decrease.

To download the full unquote" Nordic Private Equity Index, click HERE.