Standard Life Investments

Press Release

SL Capital Partners Q4 2015 unquote" Private Equity Barometer

11  February  2016

"Quiet fourth quarter, but 2015 values soar"

Preliminary figures have been released today in the Q4 2015 unquote" European Private Equity Barometer, published by unquote” in association with SL Capital Partners

Overall European Private Equity

  • Overall, 2015 witnessed a movement towards larger deals; total deal value increased by 38.4%, while total volume slipped by 9.7%. As a result, average deal value increased by 53.2%.
  • The number of European private-equity-backed deals declined by 9.1% in the fourth quarter of 2015, from the 396 transactions seen in the previous three months to 360 transactions. Combined deal value also declined, slipping by 11.6%.

European Buyouts

  • In annual terms, the value of buyouts in 2015, at €123.6bn, is up 35.7% on the previous year, while the number of deals (550) represents a 4.2% decline.
  • Aggregated value decreased markedly – dropping by 14% from the previous quarter's total of €34.2bn, to €29.4bn.
  • Deals above the €100m mark were responsible for the decrease in the total number of buyouts in the fourth quarter. The core mid-market value (€100m–€1bn) and large-cap (€1bn+) segments were down from 46 to 44 deals and from seven to six deals, respectively.
  • The Nordic region recorded the most pronounced rise in deal numbers – up 57.1%, from 14 to 22 deals. Total deal value in the region jumped 55.7% from €4.5bn to €7.1bn.
Peter McKellar

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

"While Q4 2015 disappointed in terms of the number of transactions announced, the positive for 2015 as a whole was the increase in capital deployed by European buyout funds. Trade buyers provided strong competition on deals during the year, however, in the important mid to large (€100 million - €1 billion+) buyout market, private equity groups continued to demonstrate strong deal flow. This was impressive against a background of many managers focusing on exits during 2015. Looking forward to 2016, the current volatility should offer buying opportunities for well capitalised private equity funds."

Standard life Investment