Standard Life Investments

Press Release

SL Capital Partners Q4 2016 unquote” Private Equity Barometer

17  February  2017

Large-cap deals return to boost Q4 values

Preliminary figures have been released today in the Q4 2016 Private Equity Barometer, published by unquote”, Europe's specialist private equity information provider, in association with SL Capital Partners

Overall European Private Equity

  • The combined value of European private equity backed deals increased by 47% in Q4 to €39.1bn. The overall volume declined by 8% in the same period, falling 29 to 323 transactions in Q4
  • The average deal value in the fourth quarter (€121m) was 60% higher than that of the third quarter (€75.4m)
  • Annual deal volume fell to 1,495 in 2016, a fall of 20.1% compared with 2015, while total value slipped to €123bn from €143bn, a drop of 14%

European Buyouts

  • The value of buyouts jumped 54% in Q4 from €23.4bn to €36.1bn. The number of deals decreased to 172 in Q4, down 6 from 178 in Q3
  • Overall, the aggregate volume of deals in 2016 (702) rose 14%, though value was down 10.8% on 2015 at €110.2bn
  • The large-cap market segment (€>1bn) climbed to 9 deals from 1; value increased from €2.4bn to €16.2bn
  • Buyout numbers fell in the small-cap (<€100m) and core mid-market (€100m-€1bn) from 120 to 111 for small cap and 57 to 52 for mid-cap deals, although current volumes remain slightly above the average over the past 10 quarters
  • Only the Nordic and DACH regions recorded a rise in deal numbers in Q4 – up from 19 to 24 for the Nordic countries and from 22 to 28 in DACH
Peter McKellar

Commenting on the figures, Peter McKellar, Head of SL Capital:

"Our view was that Q4 2016 would be a quieter period for European private equity managers and this has been borne out in the volume of deals announced. Notwithstanding, in the buyout space the volatile large cap segment proved again to be a swing factor, resulting in overall value for Q4 2016 increasing. Given the changing macro-economic and political environment, globally and in Europe, we think 2017 will provide interesting opportunities."

Standard life Investment