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PE-backed buyout deals up 19% in 2013 versus same period in 2012

According to a new report by Preqin, the overall value of PE-backed buyouts for 2013 so far is at $217 billion, as compared to $182 billion for the first to third quarter in 2012. This signifies a 19% increase compared to the same period in 2012. Other findings: For the third quarter of 2013, there were 363 PE-backed buyout deals in North America valued at $36 billion while the overall value of European PE-backed buyout deals for the same period was $15 billion. This latter figure is 50% lower than it was for deals in Europe for the second quarter of 2013 when the aggregate sum was $29 billion.


2nd October 2013
PE-Backed Buyout Deal Flow Up 19% in 2013 YTD Compared to Same Period in 2012
Aggregate value of private equity-backed buyout deals so far in 2013 stands at $217bn, an increase compared to $182bn for Q1 to Q3 2012
A total of 666 private equity-backed buyout deals were announced in Q3 2013 valued at an aggregate $60bn, representing a decrease in aggregate value compared to Q2 2013 when 654 deals were valued at $67bn. However, the aggregate value of private equity-backed buyout deals so far in 2013 represents a 19% increase compared to the same period in 2012.
Private equity-backed exit flow declined, with 289 exits valued at $63bn in Q3 2013 compared to 344 exits valued at an aggregate $94bn in Q2 2013.
Other Key Facts:
· North America witnessed 363 private equity-backed buyout deals valued at $36bn in Q3 2013. The aggregate value of European buyout deals in Q3 2013, at $15bn, was almost 50% lower than it was for deals in Q2 2013 ($29bn).
· Buyout deal flow in Asia was up, with $7.1bn worth of deals in Q3 2013 compared to just $2.5bn in Q2.
· 43% of all deals in Q3 2013 were leveraged buyouts, and these accounted for 66% of the aggregate value of global deals in Q3 2013.
· Add-on transactions represented 33% of the number of private equity-backed deals in Q3 2013 and 21% of the total deal value. In Q2 2013, add-on transactions only accounted for 9% of capital invested in the quarter.
· 77% of all deals in Q3 2013 fell into the small-cap bracket of less than $250mn in size, whereas large-cap deals (those valued at over $1bn) represented 6% of the number of all global deals.
· The industrials sector was again the most prominent sector in terms of the number of investments, accounting for 21% of all deals in Q3 2013. The consumer & retail sector accounted for the largest proportion of capital invested in Q3 2013 at 30%.
· The largest private equity-backed buyout deal this quarter was the $6bn announced secondary buyout of Neiman Marcus Inc. by Ares Management and CPP Investment Board from TPG and Warburg Pincus.
· The number of private equity-backed exits via IPO and follow-on share offerings in Q3 2013 dropped to 32 compared to Q2 2013 when 78 exits were made via the public market.
For more information and analysis, please see the factsheet that follows.
“Private equity-backed buyout deal flow continues to be encouraging for 2013 and is up 19% on the same period in 2012, demonstrating private equity fund managers continue to find good opportunities for investments, despite some concerns that deal flow is decreasing. While the majority of deals continue to occur in North America, Asian private
equity deal flow has shown signs of improvement throughout 2013.”
Ignatius Fogarty – Head of Private Equity Products, Preqin
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