Q1 ’07: Record Buyout Dealflow

Buyouts Magazine is reporting that Q1 2007 was the busiest quarter on record for leveraged buyouts, with 283 control-stage transactions at a disclosed value of $102.6 billion. The data includes only closed transactions that involve U.S. sponsors and/or U.S. targets.

The same period last year saw 248 deals for a disclosed value of just $50.7 billion, while the prior deal volume record-holder had been Q3 2006 with 258 transactions. The only Q1 down-note was that the disclosed deal value dropped around 26.7% from $139.9 billion in Q4 2006. Such a drop is not surprising for a first quarter, due to the large number of mega-deals that typically close at year-end.

Q1 fund-raising for U.S.-based buyout and mezzanine funds also hit record highs, with around $68 billion. Big raisers included Hellman & Friedman, Leonard Green & Partners, Providence Equity Partners and Sun Capital Partners.