Buyouts recently wrapped its Q2 quarterly deal wrap-up, and the consensus, to put it bluntly, was ugly.
Though our data was cut off at June 15, the results showed U.S.-based PE firms had closed 38 percent less control-stake deals in Q2 than in Q1, according to Thomson Reuters. This suggests many firms have spent much of the first half of the year closing out deals they couldn’t get across the finish line in 2010 and replenishing their pipeline, all the while facing stiff competition from strategic buyers and other PE firms. Deal volume is still well below pre-financial crisis levels, too: U.S.-based sponsor deal activity for the first half of the year is down about 73 percent from the first half of 2005, according to our data. For details, see our upcoming issue, to be published July 4.
In the meantime, let’s take a look forward at the ten largest pending deals U.S.-based sponsors struck in Q2. Notable notes: The largest pending deal is smaller than the largest deal closed in Q2–CD&R’s $2.9 billion buyout of Emergency Medical Services Corp.–and far short of the KKR-led $5.3 billion buyout of Del Monte, the largest deal of Q1. Also, KKR has three deals pending in the top 10. Finally, seven of the ten largest targets are based outside of the U.S.