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Laxman Pai, Opalesque Asia: A total of 5,106 private equity-backed buyout deals were announced through 2018, an all-time record, building on the previous record of 4,829 seen in 2017, said a latest report by Preqin.
According to Preqin Insights the total value of these deals also rose to reach $456bn - this is close to the $460bn seen in 2015, and may surpass it given that Preqin expects these figures to rise by up to 5% as more information becomes available.
Nonetheless, 2018 remains some way off the all-time record deal values seen immediately prior to the Global Financial Crisis: 2007 recorded $700bn in deal making from 3,877 deals, said the report.
According to Preqin's Christopher Elvin, Head of Private Equity, if 2017 was a year marked by record levels of fundraising, then 2018 was a year marked by record levels of deal making. With dry powder breaking the $1tn barrier in 2017, some feared that there was too much available capital that might overheat the market and deter deal making, he pointed out.
"In fact, we have seen the opposite occur, but some doubt remains: dry powder has kept climbing to $1.2tn, and fund managers and investors both still say that asset pricing is a concern. However, strong activity in 2018 may dampen these concerns, and 2019 seems poised to see deal activity climb further rather than slackening," Christopher added.
North America saw 2,787 deals announced worth a total of $264bn, while Europe saw 1,779 deals worth an aggre...................... To view our full article Click here
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