European highlights:

  • Uncertainty remains the key word surrounding the European M&A markets. As the political turmoil affecting the UK has infiltrated already turbulent political environments around Europe, we continue to rely on high levels of dry-powder within private equity funds to bolster M&A deal volumes, with private equity backed buyouts accounting for more than 20% of the European M&A deal value in the first half of 2019
  • Although well drawn from the 2017 heights, fundraising has picked up in this quarter for big funds. It is clear that Europe is an environment in which larger funds have thrived, and for those at the small end of the scale it has proven more of an effort to secure the final close
  • Total deal volumes are down 21% when compared to the same period in 2018, in what is typically a buoyant quarter. Our Q2 buyout activity charts below illustrate these volumes and are split by:
    • Number of transactions
    • 2014 – 2019 YTD by sector
    • Q2 2019 by sector
    • 2014 – 2019 YTD by region
    • Q2 2019 by region
  • The sector worst hit by lower deal volumes was Business Services, which was down 25% compared with the same quarter in 2018
  • In contrast, Healthcare deals were up 8% which was driven predominantly by the number of deals in the Benelux
  • Industrials continues to be the sector in which PE funds invest the most capital, at a fairly constant proportion of 28% of total buyout volumes throughout the last five years
  • The proportion of Consumer, Leisure and Retail transactions announced also remains consistent with their five-year average, however it is likely that this is being fuelled by less conservative funds who, in a competitively priced market, are looking for opportunistic transactions where pricing provides the platform to enter the market and deploy significantly further capital to improve the business operationally

The below charts illustrate the private equity activity across Europe during Q2 2019. Also below is a snapshot of YTD activity, split by sector and region.

European activity snapshot

Q2 buyout activity in the European mid-market (#of transactions)

YTD activity by sector and region

Who’s been fundraising?

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Regional highlights

 

 

 

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