Standard Life Investments

Press Release

SL Capital Partners Q1 2016 unquote" Private Equity Barometer

17  May  2016

Temporary blip or market step-change?

Preliminary figures have been released today in the Q1 2016 Private Equity Barometer, published by unquote", Europe's specialist private equity information provider, in association with SL Capital Partners

Overall European Private Equity

  • Overall the year to Q1 2016 witnessed a shift towards larger deals; total deal value increased by 28.2%, while total volume slipped by 15.9%. As a result, average deal value increased by 52.4%
  • The number of European private-equity-backed deals declined by 11.7% in the first quarter of 2016, from the 394 transactions seen in the previous three months to 348 transactions. Combined deal value also declined, slipping by 54.2%.

European Buyouts

  • The aggregate value of buyouts in the year to Q1 2016 (€119.6bn) was up 26.7% on the previous 12 months , while the number of deals 9544) represents an 8.3% decline
  • Aggregated value decreased markedly – dropping by 54.5% from the previous quarter’s total of €30.1bn, to €13.7bn
  • A shortage of dealflow in €100m+ ranges was responsible for the decrease in the total number of buyouts in the first quarter. The core mid market value (€100m – 1bn) and large cap (€1bn+) segments were down from 45 to 40 deals and from six to one respectively. The small-cap (sub €100m) range barely improved relative to fourth quarter, increasing from 85 to 86 transactions
  • France was the only region to record a rise in deal numbers in Q1 – up 30% from 30 deals in Q4 to 39. Total deal value declined everywhere except the DACH region, where the value of buyouts in Austria and Germany jumped €1.5bn, ensuring that the region’s total value rose by 2.6%
Peter McKellar

"Early 2016 was always going to be tough, following the high activity levels for European private equity towards the end of 2015. The recent market volatility stemming from global factors, including the slowdown in Chinese growth, brought many potential transactions to a halt as vendors and private equity funds paused to see how this would impact the projected returns for deals. To an extent, the French and German markets bucked the trend. Assuming current macro-economic and political uncertainties dissipate, we would expect a pick-up in transactions in H2 2016."

Standard life Investment