|
Laxman Pai, Opalesque Asia: European private equity (PE) deal volume plunged to its lowest point in seven years during the second quarter, with the UK suffering the greatest drop.
According to PitchBook, deal count and value dropped to their lowest quarterly figures since third quarter 203 and the fourth quarter of 2016, respectively due to uncertainty surrounding the virus.
The report, Q2 2020 European Private Equity Breakdown, found European PE deals and fundraising sharply declined through the first half of the year.
As the COVID-19 crisis unfolded, lenders concentrated on existing loans, sellers tabled exit plans amid the volatility and most GPs either paused or outright canceled transactions as portfolio triage took precedent.
Deal count and value plunged to the lowest quarterly figures since Q3 2013 and Q4 2016, with the UK & Ireland recording the largest year-over-year decline in deal volume.
Exit value in Q2 saw an uptick from Q2 2019, propelled by the largest European IPO in nearly a decade, but is still on track to set a six-year low for annual exit value. On the whole, we expect exit activity to remain tepid through the second half of 2020.
European PE deal activity slowed considerably in Q2 2020 to €79.8 billion across 650 deals, a year-over-year decline of 18.7% and 31.5%, respectively.
Median deal size fell to €25.0 million in the first half of the year after record highs in 2019, driven by a lack of activity in the upper end of the m...................... To view our full article Click here
|
RSS
