New Q2 Data: Highest LBO Volume Since 2008

Buyout deal volume just concluded its strongest quarter in two years, according to data released today by market research firm Preqin.

Globally, Preqin reports 411 private equity-backed transactions in second quarter, raising $43.3 billion. This is up from the same period in 2009 when 295 deals were valued at $14.6 billion. The totals are also the best for buyouts since third quarter 2008 when 483 deals raised $45.1 billion.

North America produced much of the deal value. There were 175 deals in North America, valued at $26.7 billion. By comparison, Europe had 169 deals in second quarter, raising a total of $11 billion. Asia, and the rest of the world, produced 67 deals, valued at $5.6 billion.

Most of the deals came in the lower middle market, with 50% of Q2 buyouts valued at less than $100 million, Preqin said. But this changes in terms of aggregate deal value where mid-market and large deals dominate. Deals valued at $500 million to $999 million comprise 23% of total aggregate deal value, while large deals–those over $1 billion–represented 46% .

The $3.9 billion buyout of Extended Stay by a consortium led by Centerbridge Partners (including Blackstone Group and Paulson & Co.) was the quarter’s largest, followed by Warburg Pincus and Silver Lake’s $3.4 billion deal for Interactive Data.