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Preqin’s quarterly private equity-backed buyout dealflow data for Q2 2010 shows total deal value increasing by 60% from Q1, marking the most active quarter since 2008. A total of 411 private equity-backed buyout deals were announced in Q2 2010, with an aggregate value of $43.3bn, compared to the 356 deals announced in Q1 worth $27.1bn.
Other Key Facts:
- Aggregate deal value rose sharply in North America in Q2 2010 compared with the previous quarter, with a total of 175 deals accounting for $26.7bn. This is more than double the aggregate value seen in Q1 2010, which saw 188 deals in North America with an aggregate deal value of $12.8bn.
- Aggregate deal value in Europe remained relatively stable in Q2 2010, with an aggregate value of $11bn in Q2 2010 compared with $10.3bn in Q1 2010 and $12.8bn in Q4 2009.
- There was increased dealflow in Asia and Rest of the World in Q2 2010 with 67 deals accounting for an aggregate deal value of $5.6bn. This is a 40% increase in aggregate deal value from Q1 2010, which saw 39 deals with an aggregate deal value of $4bn.
- Almost half of all deals globally in Q2 2010 were leveraged buyouts, accounting for 54% of the aggregate deal value globally during the period.
- 23% of deals completed in Q2 were growth capital investments, while add-on deals made up 19% of all private equitybacked investments in Q2 2010.
- 50% of all buyout deals globally in Q2 2010 were valued at less than $100mn
- Mid-market and large deals dominate the market in terms of aggregate deal value, with deals valued at $500-999mn and over $1bn representing 23% and 46%, respectively, of total aggregate deal value.
- There has been a significant rise in secondary buyout deals in 2010 compared to 2009, with 70 secondary buyouts valued at $18.5bn globally in 2010 YTD, more than three times the value of secondary buyouts in 2009, which saw 59 transactions valued at $6bn.
- North America played host to some notable buyouts during Q2 2010, with 9 of the 10 largest deals globally during the quarter taking place in the region. Noteworthy deals include the announced acquisition of Extended Stay by a Centerbridge-led consortium including the Blackstone Group and Paulson & Co in a $3.9bn transaction, and the announced $3.4bn acquisition of Interactive Data Corporation by Warburg Pincus and Silver Lake.
- During Q2 2010 there were 140 private equity-backed exits with an exit transaction size of $42bn, a 57% increase in aggregate exit size from the previous quarter, where 136 exits with an aggregate exit transaction value of $27bn took place. This level of exit activity makes it the most active quarter for exits in the post-credit crunch landscape.
Please click here to download a factsheet for more data on regional, industry and size splits plus top exits and deals
Comment:
“Despite continuing challenges in the buyout market in this post-credit crunch landscape, dealflow in Q2 2010 represents the strongest quarter for buyout deals since the onset of the financial crisis in 2008. This quarter has been notable for a surge in North America-based buyout activity, with 175 deals valued at $26.7bn in the region – more than double the aggregate value of deals announced in North America during the previous quarter – and 9 of the 10 largest deals announced globally during Q2 2010 taking place in North America. Secondary buyout activity remains strong in comparison to 2009, with the value of such transactions during 2010 YTD already representing more than three times the value of secondary buyouts during 2009. The largest deal of the quarter is the announced acquisition of Extended Stay by a Centerbridge Capital Partners-led consortium including the Blackstone Group and Paulson & Co in a transaction valued at approximately $3.9bn.”
Manuel Carvalho, Managing Analyst – Buyout Deals
