UK - EVCA final figures show record investment in 2007

nicola
19 June 2008

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The EVCA has released its final figures for private equiity activity in 2007, with the report showing that a record EUR 73.8bn was invested across Europe, EUR 2.6bn higher than in 2006.

Buyout investments made up around 79% of this figure with a total value of EUR 58.3bn, with mid-market transactions leading the way and repesenting a third of the total amount invested in European companies. Early-stage deals, although making up only 3.6% of the amount invested, accounted for a substantial 38.9% in terms of volume.

Significantly, 2007 was the also the first year that sales to other institutional investors exceeded trade sales. The total amount divested at costs was EUR 27.1bn, a 18.6% drop from 2006, with secondary buyouts accounting for 30.4% of the total against 28.2% for trade buyers.

In fundraising, EUR 79bn was raised in 2007, which is lower than the levels seen in 2006 but almost 10% higher than 2005, with EUR 60bn of this being allocated to buyouts. About half of the capital raised in 2007 was concentrated in 14 individual vehicles that closed above EUR 1bn. The total target figure for new funds being launched reached EUR 77.3bn.

The US and the UK remain the main sources of funds raised in Europe, with the US representing 19.5% of the total and the UK close behind with 16.9%. For the first time, Greece made it into the top five countries with 9.2%, putting it ahead of the German and Asian markets.