Standard Life Investments

Press Release

SL Capital Partners Q2 2014 unquote” Private Equity Barometer

30  July  2014

Uptick in buyout volumes with DACH region particularly strong and UK rebounding nicely

Preliminary figures have been released today in the Q2 2014 unquote” European Private Equity Barometer, published by unquote” in association with SL Capital Partners.

Overall European private equity

  • The Q2 total of 335 transactions represented an increase of just a single deal on the preceding period and is the third lowest over the two-and-a-half year sample
  • Value continued its trend of wide fluctuation, echoing the jump between Q3 and Q4 last year by rebounding strongly from the €17.4bn first quarter figure to €23.1bn
  • A shift from expansion deals to buyouts saw acquisition activity surge to a 10-quarter high of 126 transactions, while growth capital plunged to a low of 151
  • The buyout recovery was concentrated in the sub-€1bn mid-market, which recorded a quarter-on-quarter value rise of more than €6bn

Buyouts

  • Buyout activity registered a rise of 15% over the 110 deals recorded in the first quarter, reaching 126 transactions
  • The segment has recorded near continuous growth from the bottom of the market (95 deals) in Q1 2013, with only the three months to March bucking a steady upwards trend
  • Aggregated enterprise value also soared in Q2, rising by more than 50% to €21.1bn compared with less than €14bn last time around
  • Despite the recovery in deal value, the latest quarterly figure was in fact marginally below that for the final three months of 2013
  • Five deals worth €1bn or more were completed in Q2, with a total value of €6bn. This shows little change from the previous two quarters (three and four deals worth €5.6bn and €5.7bn respectively)
  • The major movement occurred in the €100m-1bn mid-market, where a 35% rise in volume came alongside a 115% jump in value to €11.8bn
Peter McKellar

Commenting on the figures, Peter McKellar, Managing Partner and CIO of SL Capital Partners said:

"We are again encouraged by the increase in overall buyout activity in Europe, as the leading private equity managers continue to seek out high quality businesses to back in leveraged transactions in key geographies. This is especially true in the mid market which, as the core segment of the European opportunity today, is continuing to demonstrate that it is a robust and attractive market."

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