In the fourth edition of Gatti Pavesi Bianchi's series on the Italian private equity and M&A markets, partners Andrea Giardino, Gianni Martoglia and Stefano Valerio explore why buyouts have remained resilient in the face of difficult economic conditions
A record-breaking 2018 – the most prosperous year for the Italian private equity market on record – was always going to be a hard act to follow. However, 2019 has been up to the challenge. The first three quarters have shaped up very well in terms of volume, with total deal numbers marginally higher than those for the same period in 2018: 114 deals by Q3 in 2018 compared with 117 deals this year.
The picture in value terms is somewhat different. There have been deals worth €9.5bn in the nine-month period, compared with €18.6bn recorded by the end of Q3 2018. However, the 2019 figure should be put into perspective – of the record €20.5bn registered last year, more than €5.9bn, or 29%, was attributable to a single deal: the acquisition of medical firm Recordati by CVC Capital Partners. In addition, the value total is already above every year from 2010 to 2014 and 2017, and, by the end of 2019, it is likely to be the second highest total on record.
The key factor behind the fall in value compared with 2018 is the absence of mega-deals. The three largest transactions in 2018, all of which were €1bn-plus trades, had a combined value of over €9bn; so far this year the top three had an aggregate value of €2.9bn.
To read the rest of the report, including detailed sector breakdowns and comparisons with the wider M&A market, click here
Strategy will target later-stage life sciences businesses, as well as undervalued listed companies
Fund has a special focus on the e-commerce, software, cybersecurity, fintech and blockchain sectors
GP is looking to invest in 35 tech startups in Europe and the US that are focused on the climate
Partners Hubert Deitmers and Martijn Hamann will now be the sole owners of the firm