Q4 2008 unquote” European Private Equity Barometer

January 23, 2009

The unquote” Q4 2008 Private Equity Barometer sponsored by Candover is out, and as expected, the news is not much different than the unquote”/Bridgepoint report on 2008 European buyout market.  

Total value of European private equity-backed transactions in the final quarter of 2008 dropped to €8 billion, a 59% decline from Q3.  It is also the lowest quarterly value since Q2 1997.

Q4 was merely the cherry on top of a very sour cake that was 2008 as final year figures for the total private equity market in Europe showed a remarkable drop in value, with 2008’s total of  €87 billion representing a near 59% decline against the record total of €198 billion in deals seen in ’07. 

The barometer shows that buyout values in the quarter fell further, by 61%, which also happens to be how far European buyout values plummeted for the full year to a grand total of €73 billion.

Here’s the barometer to read:

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Private Equity in UK Hits 13-Year Low in Q4 2008

January 7, 2009

According to a study by the Centre for Management Buyout Research (CMBOR) that was sponsored by Barclays Private Equity, total deal value in the UK private equity market (Europe’s largest PE market) dropped to its lowest level in over 13 years in Q4 2008.  The value of buyouts reached just £994m in Q4 2008, substantially off the £5.7bn total from a year prior, and well behind the £5.6bn in Q3 2008. 

Dramatic decreases were seen in all value ranges. In the sub-£10m bracket, deal value fell by 41% compared to Q3.  Deals in the £10-£100m range dropped an unsightly 59% over the the same quarter to quarter time frame. And the winner for biggest drop off a cliff goes to deals in the £100-500m range, which had a ghastly 78% decline versus the previous quarter.

2008 private equity deal values for the UK tentatively totalled £19.1bn and volume came in at 549 deals, down from 2007’s record figure of £45.9bn on 671 deals.

Don’t look for things to pick up in the first-half of 2009 either.


Pitchbook’s Q4 2008 Private Equity Breakdown

November 21, 2008

PitchBook, the Private Equity data and information provider, has released it’s quarterly analysis of deals leading into Q4 2008. A couple of quick observations: interesting to note that how balanced the percent of private equity investment (total $ amount) was in ’02, ’03, and ’04 before becoming amazingly top heavy in ’07 with 65% of the total amount coming from large cap deals. It seems from the data that we’re experiencing a return to normalcy…or at least 2005! For the first three quarters of 2008, there’s been a 33% drop in the number of deals made (from 1,936 to 1,302) from the same time frame one year earlier. The amount of capital invested declined 57% from $354.5 billion to $152.3 billion. A marked decrease, but still the sixth highest total on record. Again, perhaps it’s 2005 all over again (might make all those hirings last year at big firms not look so smart now). Also, what’s not changing is the trend for the size of funds being raised to keep getting larger and larger.