UK Watch: Q1 activity hits five-year low

John Bakie
12 April 2013

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UK private equity saw its worst quarter since 2009 despite widespread optimism in the market, according to the latest unquoteт UK Watch, in association with Corbett Keeling.

Following on from a boom in mega-deals seen in Q4 2012, the first quarter of the year was lacklustre, but professionals surveyed by unquote" were hopeful of improved activity in the next six months.

The smaller buyout space continued to struggle, with just 17 deals worth less than £150m in Q1 following on from a weak second half of last year.

Large deals also suffered, though they had seen an explosion in value in Q4 2012. Just five deals worth more than £150m were seen in Q1 2013, compared to 10 in the previous quarter, and their aggregate value was just £1bn, down from £7.7bn.

Unfortunately, expansion and early-stage activity also saw no respite from the declines seen late last year. There were a total of 57 deals, though their aggregate value fell to £367m, the lowest for two years.

Despite this though, professionals surveyed believe the market is set to grow this year, with the industrial, services and technology sectors expected to perform strongly.

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