• Home
  •  
    Regions
    • Europe
    • UK & Ireland
    • DACH
    • Nordic
    • France
    • Southern Europe
    • Benelux
    • CEE
    • Asia
  •  
    Deals
    • Buyouts
    • Venture
    • Exits
    • Refinancings
    • Build-up
    • Turnaround
    • Secondaries
    • Advanced deal search
  •  
    Funds
    • Buyout
    • Venture
    • Mezzanine
    • Debt
    • Funds-of-funds
    • Secondaries
    • Fundraising pipelines
    • Advanced funds search
  •  
    GPs & LPs
    • GP profiles
    • LP profiles
    • GP news
    • LP news
    • Sponsors search
    • LPs search
  •  
    Secondaries
    • Deals
    • Funds
    • News
    • Analysis
  •  
    People
    • People moves
    • Analysis
    • In Profile
    • Q&A
    • Videos
    • Comment
  •  
    Analysis
    • In Profile
    • Fundraising
    • Q&A
    • Comment
    • Videos
    • Podcast
    • Reports
    • Data Snapshots
  •  
    Unquote Data
    • Deals search
    • Exits search
    • Funds search
    • Sponsors search
    • Advisers search
    • LPs search
    • League tables
    • Reports
  • Sign in
  • Sign in
    • You are currently accessing unquote.com via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0)203 741 1137

      Email: Georgina.Lawson@acuris.com

      • Sign in
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
  • Free Trial
  • Subscribe
Unquote
Unquote
  • Home
  • Regions
  • Deals
  • Funds
  • GPs & LPs
  • Secondaries
  • People
  • Analysis
  • Unquote Data
      • Deals search
      • Exits search
      • Funds search
      • Sponsors search
      • Advisers search
      • LPs search
      • League tables
      • Reports
  • You are currently accessing unquote.com via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0)203 741 1137

    Email: Georgina.Lawson@acuris.com

    • Sign in
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
UNQUOTE
  • Investments

Buy now, realise later - sponsors go on spending spree amid exit lull

Buy now, realise later - sponsors go on spending spree amid exit lull
  • Rachel Lewis
  • 16 August 2022
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

Private equity funds have been spending lavishly in the year-to-date (YTD) making a record 697 buyouts in EMEA; exits, though, have dipped as those same funds fear cashing out on weaker market valuations.

Exits from sponsor-backed firms are down nearly a quarter by value to EUR 81.2bn in the YTD compared to 2021, while buyouts remain just 0.7% behind last year's record-breaking activity at EUR 183.3bn, according to Dealogic data. Compare this to total M&A value, which is down 5% versus YTD21. 

Sponsors also continue to up their muscle in overall M&A, with platform deals now accounting for 25.7% of the total value in the YTD, up 110bps.  

Valuation hang-ups are clear from the number of 1H22 processes that have collapsed or are yet to complete. Capiton recently shelved a dual-track of its German CDMO KD Pharma on those grounds, while Bridgepoint's exclusivity for G Square's French dental chain Dentego collapsed over price expectations.  

Burn a hole in PE's pocket 
The splurge is driven by ever-growing heaps of dry powder - take Advent International's record USD 25bn (EUR 24bn) fund - and a correction in valuations. However, if sponsors are selling fewer assets, then buyers must look elsewhere to shell out. 

Primary buyouts are up as founders look to realise value or raise capital for expansion before a further downturn. The biggest deals YTD include CD&R's GBP 2.5bn (EUR 2.8bn) merger of UK facilities managers Atalian Servest and OCS, and Goldman Sachs Asset Management's EUR 1.9bn acquisition of Dutch pharmaceuticals company Norgine. 

EMEA corporate carve-outs are on track to reach total values of 2021 and 2020, at a total deal value of EUR 56.5bn. Noteworthy transactions included Astorg's EUR 2.5bn acquisition  of  CordenPharma  from International Chemical Investors Group, and Bain Capital and NB Renaissance's buyout of French IT services firm Inetum from Qatar-based Mannai Corporation. 

Public-to-privates also remain a creative way to splurge, like Astorg and Espiris's joint GBP 1.6bn (EUR 1.9bn) de-listing of market news organisation Euromoney.  So far, 26 such deals have been announced this year in EMEA, worth a combined EUR 72.8bn. This represents the highest YTD value on Dealogic record.

Top 5 public-to-private buyouts in EMEA in 2022

Announcement Date Target Acquirer Deal Value (EURbn)
14-Apr Atlantia SpA (66.9%)

Blackstone Inc

Edizione SpA

42.7
19-May HomeServe plc Brookfield Infrastructure Partners LP 5.5
17-May ContourGlobal plc

KKR & Co Inc

Cretaceous Bidco Ltd

5.5
28-Apr Albioma SA KKR & Co Inc 2.6
07-Jun Biffa plc Energy Capital Partners LLC 2.3

Source: Dealogic

Sample sale
Sponsors still face the obvious pressure to liquidate assets at the tail-end of a fund cycle, leaving owners to assess two main options going forward: to accept the price on the table or to push the asset into a secondary. 

There are signals that some sponsors have sold slightly lower than expected. Hg was targeting a EUR 1bn price tag on German care software developer Medifox Dan but settled just below at EUR 950m in a trade sale to ResMed.

As for continuations, KD Pharma has already gone that route reducing pressure on the collapsed sale. Triton's Assemblin and Novum Capital's MMC Studios have also faced similar fates to avoid spreads in price expectations or help wind down funds.

But with funds always marching towards expiry, exits will have to increase. Buyers look set for some bargains in the New Year sales.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • Investments
  • Benelux
  • CEE
  • DACH
  • France
  • Nordics
  • Southern Europe
  • UK / Ireland
  • Exclusive

More on Investments

Change of mind: Sponsors take to de-listing their own assets
Change of mind: Sponsors take to de-listing their own assets

EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater

  • Investments
  • 04 September 2023
BHM Group builds on PE strategy, eyes European medtech and renewable energy acquisitions
BHM Group builds on PE strategy, eyes European medtech and renewable energy acquisitions

Czech Republic-headquartered family office is targeting DACH and CEE region deals

  • Investments
  • 01 September 2023
Evoco expects portfolio acquisitions, assesses potential exits in 2H23
Evoco expects portfolio acquisitions, assesses potential exits in 2H23

Switzerland-headquartered GP is currently deploying equity via its EUR 162m Evoco TSE III fund

  • Investments
  • 21 August 2023
Turning the tables – an M&A downturn means investment banks are now targets themselves
Turning the tables – an M&A downturn means investment banks are now targets themselves

Some dealmakers with healthy balance sheets and willingness to go countercyclical are pursing acquisitions

  • Investments
  • 14 August 2023

Latest News

Partners Group to release IMs for Civica sale in mid-September
  • Exits
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017

  • 04 September 2023
BHM Group builds on PE strategy, eyes European medtech and renewable energy acquisitions
  • Investments
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Czech Republic-headquartered family office is targeting DACH and CEE region deals

  • 01 September 2023
Redalpine expands leadership team amid CHF 1bn-plus fundraise
  • Venture
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Ex-Rocket Internet leader Bettina Curtze joins Swiss VC firm as partner and CFO

  • 31 August 2023
Change Ventures aims to hold final close for EUR 20m third fund by mid-2024
  • Funds
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Estonia-registered VC could bolster LP base with fresh capital from funds-of-funds or pension funds

  • 31 August 2023
Back to Top
  • About Unquote
  • Advertise
  • Contacts
  • About Acuris
  • Terms of Use
  • Privacy Policy
  • Group Disclaimer
  • Twitter
  • LinkedIn

© Merger Market

© Mergermarket Limited, 10 Queen Street Place, London EC4R 1BE - Company registration number 03879547

Digital publisher of the year 2010 & 2013

Digital publisher of the year 2010 & 2013