UK and Nordics outperforming rest of Europe

The unquote" data quarter-on-quarter analysis shows that, while the number of deals completed in both the DACH region and France declined by almost 50% between Q1 2011 and Q1 2012, the UK/Ireland climbed by 10%.

Reasons for this development can be found in the degree of volatility on the European continent, where the exposure to peripheral sovereign debt and the euro is having a far greater impact on market confidence than in the UK.

In terms of market value however, Europe's big regions were outperformed by the Nordics. Despite a slump in volume along the lines of its neighbouring regions, the amount of money spent more than doubled quarter-on-quarter. While the Nordic region only saw €1.45bn deployed in 2011, less than other small regions like Benelux, it has raced ahead in 2012 with €3.34bn invested so far.

All other European regions felt the impact of the crisis and the difficulties this has caused when raising debt. Funding problems may be the prime reason for the slow pace in the large-cap buyout market, which is affecting statistics.

The Nordics have become a safe haven for investments, because they provide a sustainable business environment with comparably little volatility, making it a safe haven for private equity investors. Arguably, as conditions worsen, the region will continue to outperform others, as investors become more cautious.

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