Standard Life Investments

Press Release

SL Capital Partners Q3 2016 unquote" Private Equity Barometer

09  November  2016

Core mid-market buyouts return to growth

Preliminary figures have been released today in the Q3 2016 Private Equity Barometer, published by unquote”, Europe’s specialist private equity information provider, in association with SL Capital Partners.

Overall European Private Equity

  • As is typically the case during the summer holiday period in Europe, the number of European private-equity-backed deals declined, down 15.1% to 309 transactions in Q3 2016 from the 364 transactions seen in the previous three months. Combined deal value also decreased by 23.5%
  • The average deal value in the third quarter (€80m) was 9.9% lower than that of the second quarter (€88m)
  • Overall the year to Q3 2016 witnessed total deal value decrease by 21.2%, while total volume slipped by 22.4%. As a result, average deal value increased marginally by 1.6%

European Buyouts

  • The aggregate value of buyouts in the year to Q3 2016 (€99.2bn) was down 20.9% on the previous 12 months, while the number of deals (590) represented a nominal 0.2% rise
  • Aggregated value also decreased, down 26.1% to €21.7bn from the previous quarter’s total of €29.4bn
  • The core mid-market segment (€100m-1bn) increased by 13%, from 46 to 52 deals; value increased by 20.4% from €13bn to €15.6bn
  • A slowdown of dealflow in the small-cap (sub-€100m) and large-cap (€1bn+) ranges was responsible for the decrease in the total number of buyouts in the third quarter
  • France and the “rest of Europe” categories were the only regions to record a rise in deal numbers in Q3 – up 6.9% in France (from 29 to 31 deals) and by 27.3% in the rest of Europe (from 22 to 28 deals).
Peter McKellar

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

"While Europe experienced its normal slowdown in private equity activity during summer 2016, it is clear that recent market volatility in the UK and continental Europe reduced the appetite for new investments. The large buyout segment again highlighted that it is a key swing factor quarter-on-quarter in value terms, however, we are encouraged that core mid-market private equity deals, the mainstay of the European market, delivered an increase in both volume and value during the period. We note with interest that the French private equity market rivals the UK as the most significant market in Europe over the past 12 months."