Unquote

Q3 Barometer: Deal volume continues to slide

SL Capital Barometer Q3 2015
  • unquote" and SL Capital
  • LinkedIn  
  • Google plus  

Total European private equity deal volume slipped by 10% in Q3 this year compared with the previous quarter, marking a continued decline in activity, according to the latest unquote” Private Equity Barometer, published in association with SL Capital.

The overall number of European private equity deals fell by 10% this quarter, from 368 transactions recorded in Q2 2015 to 330 in the third quarter, marking the lowest quarterly total since 2009. Combined deal value also declined by 19%, though this is mainly a result of a slowdown in deals worth more than €1bn. But when looking at the figures on an annualised basis, total deal value increased by 33% in the 12 months to Q3 2015, while total deal volume fell by 7% when compared with the 12 months to Q3 2014.

The slip in total deal volumes was felt more keenly in the buyout space, where deal numbers decreased to 123 in Q3 from 137 in Q2. Combined value also fell sharply, down by 26% to €30.8bn from €41.4bn in the previous quarter. Looking at the figures on an annualised basis, there were 534 buyouts recorded in the 12 months to Q3 2015, which is almost flat against the same period in the previous year. However, the value of buyouts in the latest period is up by a third.

Looking more closely at the buyout sector, it was the €100m-1bn deal range that saw the largest decline in deal volume, decreasing by 13% from 47 in Q2 to 41 in Q3. For small-cap deals (those valued at less than €100m), unquote" data recorded a 6% decline in volume and a 28% drop in terms of value; from 81 deals worth €3.8bn in Q2 to 76 transactions worth €2.7bn in Q3. For large-cap deals (those worth more than €1bn), there were fewer deals this quarter – six compared with nine in Q2. The total value of these deals fell by 34% from €22.2bn to €14.6bn.

Growth capital deals (including build-ups) saw an impressive rise of 77% in terms of value, from €2.9bn in Q2 to €5.2bn in Q3. However, deal volume declined by 5% from 173 to 164. The sharp increase in total deal value can in part be explained by Blackstone's sale of Vitalia to CVC Capital Partners-based Vedici, in a transaction thought to be worth €950m.

For early-stage deals, the number of deals recorded in Q3 dropped by 26% from 58 transactions recorded in Q2 to 43 in Q3. However, total value in this segment increased from €341m in Q2 to €396m in Q3. Germany was the most active market for early-stage deals, which witnessed 11 transactions in the period, accounting for a quarter of European early-stage activity.

To read the full report, including detailed statistics for the growth capital and venture markets as well as regional breakdowns, click here.

  • LinkedIn  
  • Google plus  

More on Performance

Latest News