Q4 Barometer: European deal value up 82%

The value of European private equity was up a staggering 82% in Q4 on the previous quarter, with €24.6bn recorded. Perhaps unsurprisingly, the uptick is mostly down to eight mega-deals - the highest number since Q2 2011- indicating a blip at the upper end of the market as deal volume in lower brackets languished. These accounted for €11.2bn of the quarter's total; removing them puts the value total nearer Q3's €13.5bn. The number of deals was up a more modest 21%, to 277, but full-year figures are down 14% by volume and a fifth by value.

In the final quarter of 2012, the mid-market remained subdued but, crucially, did not fall further from Q3 levels: the sub-€100m EV bracket remained steady at 59 deals while the €100m-1bn range saw a negligible drop from 30 in Q3 to 28 in Q4.

Geographically, the UK led the quarter and indeed the year. In the final three months of the year, 32 buyouts worth €10.6bn were recorded in the UK.

Click here to read the Q4 2012 unquote" Private Equity Barometer in full.

Commenting on the figures, Arle managing partner John Arney said: "While the quarter shows a positive trend, it is important not to over-emphasise its importance. As a natural milestone, the year end invariably produces a seasonal spike of completed deals. The notable trend is the significant decline in annual deal values and volumes. 2012 was a lean year.

"However, the increase in large-cap deals this quarter underlines a gradual return to health of the debt market and re-emphasises the weight of undrawn funds chasing a home.

"The outlook for trading, debt and therefore deal conditions in 2013 is a little more encouraging - but only a little. Broadly we expect more of the same as the industry grinds its way through this tough new era."

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