Standard Life Investments

Press Release

SL Capital Partners Q4 2013 unquote” Private Equity Barometer

06  February  2014

Volatile quarterly performance delivered an ultimately consistent outcome for 2013

6th February, 2014: Preliminary figures have been released today in the Q4 2013 unquote” European Private Equity Barometer European Private Equity Barometer , published by unquote” in association with SL Capital Partners.

Total European Private Equity

  • Transaction volumes bounced back in Q4 following a weak Q3. A total of 326 deals were completed, the highest total since the final quarter of 2012, with the total value of €23.6bn up 40% on the €16.9bn transacted in Q3.
  • This value uplift was largely driven by the buyout space, where mid-market deals led the way with volumes at a three-year high. These mid-market deals were the core growth driver during the year in Europe, representing 60% of the total value in 2013.
  • For the full year, total numbers ended down for the second consecutive year at 1,272 deals, however overall value was stable at €78.1bn.

Buyouts

  • The buyout segment enjoyed a strong Q4, with the volume of deals rising for the third consecutive period to the highest total since Q3 2012 at 115 deals. Despite this, the 421 deals for 2013 as a whole marks a second year of successive decline.
  • Value showed more significant growth during the final months of 2013, with the Q4 figure of €21.1bn up 37% on the €15.4bn recorded in Q3. This strong performance offset some volatility during the year, helping 2013 achieve a total value of €69.2bn, consistent with the prior period.
  • The €1bn large-cap segment recorded its first deals since the second quarter and accounted for €5.6bn of the overall total. However, the key growth remains in the mid-market €100m - €1bn transactions. This segment rose by 60% and 11% in terms of volume and value respectively, to 48 deals and €13.3bn.
  • The UK edged out the German speaking DACH region to maintain its leadership in Europe in both volume and value terms. Most regions registered growth, with only the Nordics declining in volume and value.

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

Peter McKellar

“2013 has proved to be a more volatile year than expected, with the positive developments in Q4 resulting in a year of consolidation. Momentum is strong in the core European middle market deals of €100m - €1bn, which reflects the increased confidence of the private equity funds to invest against a background of an improving macro-economic outlook for Europe, primarily in the UK and Germany. Vendors are prepared to transact and this is supported by availability of leverage. The pipeline of transactions as we enter 2014 looks to be positive and, as M&A activity picks up more generally, we expect this year to be one of growth.”

 

 

 

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