The increase in large-cap deals this quarter underlines a gradual return to health of the debt market and re-emphasises the weight of undrawn funds chasing a home.
London (PRWEB UK) 21 January 2013
Q4 paints a positive picture but annual figures still down on 2011
- Deal volumes are up 21% at 277 deals reported for Q4
- Deal value is up 82% to €24.6bn in Q4, the largest quarterly value total for eighteen months
- Annual figures show a 14% decrease in volume, an 21% decrease in value of all private equity deals
Preliminary figures released today in the Q4 2012 unquote” Private Equity Barometer (published by unquote”) in association with Arle Capital Partners
Overall European Private Equity
- Volume up 21% to 277 deals from 228 in Q3; values jumped an impressive 82% from €13.5bn to €24.6bn
- Despite the Q4 recovery, 2012 still ended 14% down in volume and 21% down in value behind 2011, finishing with annual figures of 1,092 transactions worth €71.2bn.
- On an annual basis the buy-out sector finished 2012 some way behind both 2010 and 2011, with the 385 deals worth €63.3bn. This is down by 12% and 22% respectively in volume terms and 7% and 13% in value on the previous two years.
- Overall deal volume increased in Q4 with 95 deals being completed, the second highest quarterly total over the year but still the second lowest total over the sample
- The main story was the big jump in value, with the aggregated enterprise value for Q4 of €22.8bn up by 85% on the Q3 figure and the largest recorded since Q2 2011
- This was led by strong activity in the large cap deal sector, where 8 deals were recorded over €1bn on a par with Q2 2011 and a quarterly total not beaten since Q3 2007
- The UK continued it’s dominance of the European market with 32 deals completed worth €10.6bn. The UK was thus home to more than a third of all buyouts and close to half of the value total.
Commenting on the figures, John Arney, Managing Partner of Arle Capital Partners said:
“While this quarter shows a positive trend, it is important not to over emphasise its importance. As a natural milestone, the year end invariably produces a seasonal spike of completed deals. The notable trend is the significant decline in annual deal values and volumes. 2012 was a lean year.
However the increase in large-cap deals this quarter underlines a gradual return to health of the debt market and re-emphasises the weight of undrawn funds chasing a home.
The outlook for trading, debt and therefore deal conditions in 2013, is a little more encouraging - but only a little. Broadly we expect more of the same as the industry grinds its way through this tough new era.”
For further information please contact:
Arle Capital Partners
John Arney/Julie Foster: +44 (0) 20 7895 2754
Julie.foster (at) arle (dot) com
Christian Mahne / Lindsay Vetch : +44 (0) 20 3488 3100
arle (at) vetchmahne (dot) com
Notes to editors
Arle Capital Partners Limited is a London-based private equity partnership with a distinct investment strategy to acquire businesses that provide industrial products and services to the Energy & Natural Resources sector. In the future, Arle will invest in companies located in the North Sea Rim whose characteristics fit with this focus and demonstrate clear potential for expansion into the growing BRIC countries.
Arle brings together an accomplished team of 41 people, including investment professionals and proven international business leaders from 17 different nationalities, managing a diverse portfolio of over €2 billion for a global investor base. Since taking on the portfolio in 2009, Arle has returned €730 million to investors, realising three investments: Ontex, Equity Trust and Capital Safety Group.
Arle’s approach is based on active ownership in close partnership with management in order to drive long term uplifts in growth and value which will generate strong returns for Arle’s investors. For more information, please see http://www.arle.com.
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