Q2 2010 unquote" Private Equity Barometer

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The , published in association with Candover, shows deal activity (buyout, early stage and growth capital) in the previous quarter by volume and Euro value. Figures are also recorded on a quarterly basis going back to Q1 2009, allowing comparison of deal activity. Figures are based on preliminary quarterly data from Incisive Media's unquote".

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Key Findings - Overall European Private Equity

• European private equity appeared to gain momentum in Q2 2010, with the number of deals completed breaching the 300 barrier for the first time since Q3 2008. This marks an 18% rise in the 254 deals completed in the first quarter of the year.
• In terms of value the positive trend is even more evident, with the aggregated second quarter total of €13.9bn representing an increase of close to 22% quarter-on-quarter, building on the 11% jump recorded in Q1.
• Emphasising the gains made so far this year, the year-to-date totals of 555 deals worth collectively more than €25bn represent respective rises of 23% and a staggering 211% when compared to the corresponding period of last year.
• The bulk of these increases can be attributed to the buyout space, which has seen activity and value levels surge by 55% and 289% respectively from 107 deals worth just €5.3bn in the first half of 2009 to 167 deals worth €20.7bn in 2010.

Buyouts

• The buyout market has enjoyed something of a return to form in the second quarter of 2010 following a comparatively slow opening to the year, with activity levels rising sharply by 31% from 72 deals to 95.
• On the value front there had been relative stagnation over the previous three quarters with the aggregated total for all buyout transactions remaining below €9.5bn, but this trend was again bucked as the market recorded an 18% jump to €11.2bn in Q2.
• While the totals remain comparatively low compared to those recorded in the boom years, the value total for this single quarter is more than double the combined €5.4bn total for the first two quarters of 2009.
• There was a continuing dearth of deals worth in excess of €1bn, with just a single transaction recorded in this segment: the €1.1bn buyout of Irish aircraft leasing company Avolon by Cinven, CVC Capital Partners and Oak Hill Capital Partners.
• Tellingly, this deal involved a club of three private equity houses and contained little standard leveraging with a $400m asset-backed warehouse financing facility led by UBS.
• The mid-market €100m-1bn bracket flourished in Q2 and was responsible for much of the gain recorded over the three months, having risen by 68% by volume and 19% by value to 32 deals worth €8.2bn, accounting for 34% and 74% of the buyout market respectively.
• The UK retained its position as the number one market overall with a total of 37 deals completed worth an aggregated €4.1bn, though the value total was down slightly on Q1's €4.8bn as there were no very large deals completed over the three months.
• Secondary buyouts rose 50% from 18 deals to 27 in Q2, cementing the position of this segment as the second most prolific source of dealflow behind only family and private vendors, which saw activity almost unchanged at 41 deals from 42.

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