Private Equity Buyout Deal Flow Reaches Post-Lehman High in 2012
Preqin data shows that North American deal flow reached a post-Lehman high in 2012. This contributed to strong global deal flow recorded in 2012, with 2,866 buyout deals announced valued at $254.6 billion. This nears the global post-2008 highs of 2011, which witnessed $264.8 billion globally from 2,900 buyout deals. Compared to 2010, global deal flow in 2012 represents a 14% increase in the number and a 15% rise in the value of buyout deals.
North America also witnessed a post-Lehman high in 2012 in relation to exits, with $147.1 billion worth of exits taking place in the region during the year. However, global private equity-backed exit flow for 2012 stood at 1,192 exits valued at $275.2 billion, down from the 1,145 exits valued at $310.1 billion in 2011, which was the highest level since the onset of the financial crisis. Q4/12 witnessed 304 private equity-backed exits valued at $72.2billion, an 11% increase in the number and a 2% increase in the value of exits compared to Q3/12.
Other Key Facts:
“Despite a difficult opening to the year due to continued turbulent market conditions, 2012 has seen the buyout deal flow approach the post-Lehman high in deal number and aggregate value witnessed during 2011,” Anna Strumillo, Manager at Buyout and Venture Capital Deals, said. “In particular, North America witnessed a strong 2012, recording a post-2008 high for the year of 1,590 buyout deals valued at an aggregate $152.3 billion. In contrast, European deal levels remained low in 2012. However, the $24.5 billion of European deals announced during Q4/12 is a 76% increase from the previous quarter, an encouraging indicator for 2013. With buyout firms continuing to hold an estimated $357.9 billion in dry powder as of January 2013, alongside a strong North American buyout market and a rebounding European deals market, private equity fund managers remain in a strong position in the coming months to continue to deploy their capital in opportunities globally, despite continuing market challenges.”
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