Standard Life Investments

Press Release

SL Capital Partners Q3 2015 unquote" Private Equity Barometer

20  November  2015

"European buyout market trending to a higher plateau of capital deployed in thin volumes"

Preliminary figures have been released today in the Q3 2015 unquote” European Private Equity Barometer, published by unquote” in association with SL Capital Partners

Overall European Private Equity

  • There was the typical Q3 decline in value due to the summer period, however, the overall trend on value in 2015 is positive over that experienced in the last couple of years.
  • More disappointingly, the number of European private equity-backed deals declined by 10%, from 368 transactions to 330 transactions. This is a continuation of a trend that started in Q1 2015 and was impacted by a significant reduction in early stage deals.

European Buyouts

  • Aggregated value of deals completed followed the trend set by the wider private equity markets. Value reached a higher plateau but decreased from Q2 2015 following the noted summer trend. Total value fell to €30.8bn from €41.5bn.
  • The decrease in deal volume was less marked than in early stage deals, with 123 completed, representing a decline of 14 deals from the prior quarter
  • This decrease in volume was consistent across transaction size ranges
  • France and the UK were the only two regions to record an increase in deal numbers with France up 17% from 29 to 34 deals, and the UK increasing by 9% from 35 to 38 deals
  • Benelux and the Nordic markets registered increases in the value of deals completed, reflecting a number of larger investments in a smaller set of opportunities
Peter McKellar

Commenting on the figures, Peter McKellar, Senior Managing Partner of SL Capital Partners said;

"We note that there was the typical decline in volume and value of deals in Q3 as the European markets took a break from a hectic first half in 2015. It is encouraging to note, however, that the total value of deals does seem to have moved to a higher plateau, with the first three quarters in 2015 averaging €29.6 billion invested against the 2014 quarterly average of €21.2 billion. On an overall basis the total deal volumes were depressed as a result of a decline in early stage deals, but for the European buyout market it was "business as usual". Against this background, we would expect Q4 2015 to continue the trend of higher value as managers focus on new deal activity"

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