Clearwater Multiples Heatmap: PE deals at record value in Q2 as macro pressure mounts

Unquote team
06 October 2022

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The value of PE-backed transactions in Europe surged to an all-time high in Q2 2022 т despite tough macroeconomic conditions and mounting geopolitical turbulence, the latest Clearwater Multiples Heatmap shows.

Deep reserves of liquidity and fierce competition for
high-quality assets contributed to a quarterly deal total of
EUR 83.6bn, a 32% increase from Q1.

While overall value was sharply higher in Q2, deal volume
was down 3% from the previous quarter, with a total of
283 transactions. Against this background, the average
long-term EV/EBITDA multiple for European PE transactions
climbed to its highest level on record.

Despite resurgent inflation, jittery markets and an
anticipated eurozone rate rise (which materialised at the
beginning of Q3), most regions saw strong performance in
deal value terms in Q2, with only France posting a decline.

The UK and Ireland has long been Europe's top-performing
PE market, and Q2 2022 was no exception. While deal
volume was solid rather than spectacular, the quarterly
deal value – EUR 28.3bn – is a new pan-European record.

Turning to specific sectors, TMT led the way, clocking
up deals worth EUR 22.7bn, the sector's highest quarterly total
since records began. Industrials & chemicals and the business services sectors saw their long-term deal multiples rise in Q2.

Click here to download the Q2 Multiples Heatmap report, including:

Detailed breakdowns of deal activity trends for Q2 2022
Quarterly transaction value and volume movements across the past six quarters
Qualitative deep-dives on the Business Services sector and the outlook for PEs in Nordics