• Home
  •  
    Regions
    • Europe
    • UK & Ireland
    • DACH
    • Nordic
    • France
    • Southern Europe
    • Benelux
    • CEE
    • Asia
  •  
    Deals
    • Buyouts
    • Venture
    • Exits
    • Refinancings
    • Build-up
    • Turnaround
    • Secondaries
    • Advanced deals 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
  • 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

Q1 Barometer: Signs of a brighter future after dark times for European PE

abrdn Private Equity Barometer Q1 2023
  • Unquote team
  • 24 May 2023
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

European private equity (PE) deal volume and value fall sharply in Q1 to the lowest point in five years. according to the latest Private Equity Barometer, produced in association with abrdn. However, there may be light at the end of the tunnel.

Click here to download the full Q1 Private Equity Barometer

Over the last year, we have seen European PE activity returning to the levels experienced during the onset of the Covid pandemic. However, the key influencing factors this time around have been high inflation, rising interest rates and a fundamental pricing correction in the listed markets, particularly within the technology sector which had been an increasingly active area for deals.

The combination of these factors has led to increased caution and a mismatch in buyer and seller expectations. Indeed, Q1 of this year has shown further declines across all segments of the private equity space, with growth deals exhibiting the most dramatic fall of 55% by volume.

However, public markets have shown a recovery since Q4 last year with many feeling an inflection point had been reached in early May. Investors are also starting to speak more optimistically about the future with anecdotal evidence of a recovery in deal activity starting to come through.

The venture capital market in Europe was the first to weaken last year, and in Q1 2023 saw the smallest decline across both volume and value of any PE strategy. It is possible, therefore, that early stage deal activity is acting as the pathfinder for the wider market, with a potential recovery to follow in the latter half of 2023. There may be light at the end of the tunnel.

Key findings include:

Overall European PE: European PE volume totalled 344 deals, 43% below the previous quarter’s 599 transactions and the lowest point in five years, including the nadir reached during the pandemic in Q2 2020. PE value dropped even further than volume, by 55% quarter-on-quarter to just EUR 24.1bn worth of deals, also a five-year low.

Buyouts: Buyout volume fell by 27% on the previous quarter in Q1 2023 to 162 deals, almost exactly matching the Q2 2020 pandemic low of 167. Value halved during the same period to EUR 19.6bn – the only metric across all PE strategies that is above the pandemic low.

Growth capital: Growth capital showed the weakest relative performance in Q1 2023, with volume falling by 55% on the previous quarter to 157 deals. Deal value was especially subdued, slumping by a full 70% to EUR 3.9bn from EUR 13.2bn in Q4 2022.

Early-stage: Early-stage deals had the shallowest decline in volume, slipping by 17% on the previous quarter to 25 funding rounds, a five-year low. VC deal value was almost flat on the previous three-month period at EUR 536m, down only 3% quarter-on-quarter, another nadir not reached in the past five years.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • Investments
  • Benelux
  • CEE
  • DACH
  • France
  • Nordics
  • Southern Europe
  • UK / Ireland
  • Barometer
  • Unquote
  • Aberdeen Standard Investments
  • Unquote Data
  • Unquote Reports

More on Investments

EMEA Public to Private M&A
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
Jan Cerny of BHM Group
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
Reima Linnanvirta of Trind VC
Trind VC plans up to five early-stage investments in next six months

VC has deployed around 10% of its second, EUR 55m fund and plans to invest in up to 40 startups

  • Venture
  • 31 August 2023
Guillaume Fournier of Credo Ventures
Credo Ventures sees activity uptick, plans further deals in 2023 with EUR 75m fourth fund

Czech VC firm's latest vehicle is around 50% deployed and expects to make 25-30 deals in total

  • Venture
  • 23 August 2023

Latest News

Fund closes in US dollars
  • Funds
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote

  • 05 September 2023
Clinical trials and biotechnology
  • Buyouts
Permira to take Ergomed private for GBP 703m

Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO

  • 04 September 2023
Public sector software
  • Exits
Partners Group to release IMs for Civica sale in mid-September

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

  • 04 September 2023
EMEA Public to Private M&A
  • Investments
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

  • 04 September 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