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Laxman Pai, Opalesque Asia: Global private equity-backed buyout deal figures hold up in comparison with quarterly averages, but the aggregate deal value in Asia tumbles, said a study.
"Against the odds, private equity-backed buyout deal activity remained steady in Q1 2020," said Preqin in its Quarterly Update Private Equity.
A total of 1,211 buyout deals were completed in Q1 for an aggregate of $94bn, figures that are not far off the quarterly averages in 2019 (1,344 and $101bn).
That said, deal-making activity in the buyout space is continuing its slow decline of the past few years, whereby high valuations and increasing competition have made it more challenging for managers to put capital to work.
Several mega buyout deals helped to prop up Q1 deal value. Four deals were valued at $5bn or more in Q1 2020.
The largest transaction of the quarter was the announcement of the sale of Germany-based Thyssenkrupp Elevator AG to Advent International, Cinven, Abu Dhabi Investment Authority, and RAG for €17.2bn.
Thyssenkrupp Elevator AG manufactures elevators, lifts, escalators, and moving walks. In the US, the largest deal was Searchlight Capital Partners and ForgeLight LLC's $9.7bn acquisition of a majority stake in Univision Communications Inc., the leading Hispanic media company in the US.
Looking beyond the global figures, the amount of capital deployed in the Asian buyout market declined significantly.
The $3.3bn of private equity-backed b...................... To view our full article Click here
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