The number of private equity-backed buyouts fell dramatically in the last quarter of 2011, figures show. What does this mean for private equity-backed firms?
Only 624 private equity-backed buyouts were completed in the final quarter of 2011, to a total value of $56.7bn. This is an eight per cent decrease from the previous quarter.
According to the latest figures from Preqin, Q4 2011 saw only 212 exits valued at $41.2bn, a 27 per cent fall from the $56.3bn of exits in the previous quarter. The withering figures have been attributed to the European debt crisis and continued market volatility.
When looking at 2011 as a whole, the figures are slightly more encouraging as deal and exit flow were up 18 per cent and 33 per cent respectively when compared to 2010.
Deals in the final quarter were also lower compared with the same period in 2010, which saw 703 deals with a total value of $69.1bn.
In Europe alone, at $15.6bn, the aggregate value of deals in Q4 2011 was 37 per cent lower than the $24.9bn recorded in Q3, and less than half the $33bn seen in Q2. However, aggregate deal value in 2011 as a whole was $95.4bn, a 34 per cent rise on the $71.4bn in 2010.
Globally in 2011, deals valued beneath the $100m mark accounted for 55 per cent of the total number. Meanwhile, deals valued at over $1bn represented 47 per cent of the aggregate value of deals in 2011. Around a quarter of the total number of deals and a fifth of the global aggregate value were in the industrials sector.
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