Standard Life Investments

Press Release

SL Capital Partners Q2 2016 unquote" Private Equity Barometer

11  August  2016

Small-cap deals flourish amid Brexit uncertainty

Preliminary figures have been released today in the Q2 2016 Private Equity Barometer, published by unquote”, Europe’s specialist private equity information provider, in association with SL Capital Partners.

Overall European Private Equity

  • As is typically the case during the summer holiday period in Europe, the number of European private-equity-backed deals declined, down 15.1% to 309 transactions in Q3 2016 from the 364 transactions seen in the previous three months. Combined deal value also decreased by 23.5%
  • Overall the year to Q2 2016 witnessed a shift towards larger deals; total deal value increased by 2%, while total volume slipped by 17%. As a result, average deal value increased by 23%
  • The number of European private-equity-backed deals declined by 8% in the second quarter of 2016 from 381 transactions in Q1 to 350. Combined deal value improved in the second quarter, rising by 66%

European Buyouts

  • The aggregate value of buyouts in the year to Q2 2016 (€107.4bn) was down a nominal 0.2% on the previous 12 months, while the number of deals (560) represented a 4% decline
  • Aggregated value increased markedly – rising by 80% from the previous quarter’s total of €15.2bn, to €27.3bn
  • An abundance of dealflow in the small-cap (sub-€100m) and large-cap (€1bn+) segments was responsible for the increase in the total number of buyouts in the second quarter
  • France was the only region to record a decline in deal numbers in Q2 – down a third from 39 deals in Q1 to 26. Total deal value improved everywhere except the Benelux region, where the value of buyouts in the Netherlands dropped by €679m, resulting in the region’s total value decline
Peter McKellar

Commenting on the figures, Peter McKellar, Senior Managing Partner and CIO said:

"Overall, European private equity faced significant headwinds in Q2 2016 that impacted the number of growth capital and early-stage deals. On a more positive note, European buyouts demonstrated growth in the number of deals announced in the period. The EU referendum in the UK appears to have resulted in some acceleration of buyout completions ahead of the vote, while continental European markets reverted to the normal quarterly pattern of activity. We continue to monitor closely the broader European buyout market as it adjusts to the post Brexit referendum environment. Volatility may offer opportunities for private equity investors, who have substantial capital to invest." "

Standard life Investment