European Private Equity
European Private Equity Report- Q2
A new report reveals that despite a rough first quarter, European private equity recovered in a small way during the second quarter of 2008. The improvements in Q2 are increases in both volume and value of 9% and 15% over the first quarter.However, this quarter's success is overshadowed by the heavy losses endured last quarter. YTD estimates show a drops in volume (9%) and value (53%) from last year. Although the European private equity market is much weaker than last year, there is hope in the completion of two deals worth in excess of EUR 2bn during the second quarter.
Buyouts
- The value of buyouts in the second quarter stayed pretty steady remaining above the EUR 24bn level, with only a very slight decrease. The number of buyouts had a minor increase from 160 to 173 deals.
- The trend toward small-cap continues as the volume of deals in the smallest bracket increased 3% and value rose considerably from 143m to EUR 6bn.
- On the other hand, the mid-market sector declined over the second quarter, volume dropped 18% and value fell 28%.
- Positively, the largest bracket has jumped in terms of value by 58% above the first quarter. The UK remains the leader in European buyouts with 36% of the overall total.
- Two major deals that were collectively worth EUR 3.5bn led to huge success in growth capital in the last three months. The growth capital segment increased in terms of value by 238% from EUR 1.8bn to 6bn. Growth capital also improved in terms of volume, increasing 17% in the second quarter.
- Also, six of the top ten growth capital transactions were over EUR 100m. This is a significant leap from the first quarter's biggest deal of only EUR 88m.
Early Stage
- So far, in terms of volume this has been a good year for early stage private equity. The second quarter exactly mirrored the first, with 89 early stage deals made. This is a 24% increase in volume over last year's first two quarters.
- It is a different story for early stage, in terms of value. The value of early stage deals fell 37% from the first quarter; at only EUR 278m, this is the lowest total for early stage in 18 months.
- Germany and the UK continued to perform very well in the second quarter.
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Tags: European private equity, European private equity report, private equity in Europe, Europe private equity, private equity Europe
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