UK Watch: strong Q3 deal activity

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27 October 2014

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Despite worrying macroeconomic developments, including concerns over Europe and China's economic health, UK private equity activity in the third quarter remained strong according to the latest unquote" UK Watch, published in association with Corbett Keeling.

The latest results from the unquote" quarterly industry survey found that in the lower mid-market (deals with an enterprise value of less than £150m), deal volume saw an uptick, with 40 transactions recorded, up from the previous quarter's 38. Furthermore, the aggregate value of deals rose from £1.5bn to £1.9bn, representing the highest level seen in six years.

In the larger buyout segment (deals with an enterprise value of more than £150m), activity was relatively positive compared with the second quarter. In terms of deal volume, Q3 saw six deals, in line with the previous period, and deal value jumped from £1.6bn to £2.1bn.

The early-stage and expansion category also did well, witnessing a recovery in Q3. Despite deal volume slipping from 85 to 74, deal value soared to £787m from Q2's £486m.

The results from the market survey reveal a good level of positivity from practitioners, with 70% of respondents expecting both the small-cap market to experience increased activity over the next six months, and 50% predicting increased activity in the large-cap market.

Read the full report in the unquote" UK Watch, in association with Corbett Keeling.