Mon, Sep 28, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

European PE/VC deal volume drops to a five-year low in H1 2020

Wednesday, August 12, 2020

Laxman Pai, Opalesque Asia:

European private equity and venture capital entry volume dropped to a five-year low in the first half of 2020 as managers turned away from deal-making to focus on their existing portfolios in the wake of the coronavirus outbreak, according to S&P Global Market Intelligence data.

The number of deals announced dropped 13% compared with the first half of 2019 to 2,133, said the study.

But while announced gross transaction value dipped by 9% to €63.65 billion over the period, it remained higher than valuations for the first half of 2016 through to 2018 due to a handful of large deals.

A string of mega-deals was announced in the first quarter. These included Advent International Corp. and Cinven Ltd.'s announced acquisition of ThyssenKrupp AG's elevator business for €17.2 billion. The deal, which closed July 31, was the largest private equity buyout in Europe in a decade, said the study.

But including add on activity in first-half figures changes the picture. Aggregate valuations for entries and add ons plummeted 43% to $133.45 billion in the six months to June 30. Deal volume also fell to 5,308 announced entry and add ons from 6,245 deals in the same 2019 period.

Second-quarter entries fell by 11% from 1,130 in the first quarter to 1,003. Add on figures slipped by 28% in the first quarter from 605 deals to 437 as the coronavirus pandemic took hold, and governments imposed lockdowns.

The U.K. was the busiest geography ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing: Tech stocks aren't in a bubble, but investors should be pickier, Credit Suisse says, Pandora tops world's best-performing market as hedge funds exit, What Bill Ackman is investing in now[more]

    Tech stocks aren't in a bubble, but investors should be pickier, Credit Suisse says From Business Insider: Credit Suisse on Thursday trimmed its overweight rating for tech stocks, recommending investors be more selective with their sector picks. Crowding in tech giants and the stocks&#

  2. Investing: Third Point buys stakes in Facebook, Alibaba in Q2, exits Sony, Allergan, Here's what investors with $3.4tn are buying during covid, An energy trader seeks profit from batteries in European markets, Hedge fund ARCM to sell $200m of Premier Oil debt[more]

    Third Point buys stakes in Facebook, Alibaba in Q2, exits Sony, Allergan Third Point LLC acquired new stakes in Facebook Inc. and Chinese e-commerce companies Alibaba Group Holding Ltd. and JD.com Inc. during the second quarter of 2020 as it divested positions in Sony Corp. and drugmaker

  3. PE/VC: Investors have bet big that you can get private equity returns in the public markets. A new study says otherwise, Aberdeen's Bonaccord teams up with CAZ to buy stakes in private markets managers, The role of private equity in economic recovery from Covid-19[more]

    Investors have bet big that you can get private equity returns in the public markets. A new study says otherwise From Institutional Investor: New research suggests private-equity-owned firms respond differently to financial distress - and that the resulting performance "cannot be replicat

  4. Opalesque TV: Meet a Swiss fund manager who hedges with a difference[more]

    B. G., Opalesque Geneva: There is a quant manager in Zurich that does things a little differently, which has helped a lot so far this year. ICON Asset Management, which was mentioned in the

  5. Franklin Templeton creates new unit with QS Investors[more]

    Laxman Pai, Opalesque Asia: Franklin Templeton will combine recently acquired QS Investors, a Legg Mason subsidiary, with Franklin Templeton Multiasset Solutions (FTMAS) business into a single consolidated unit. Effective Oct. 1, the combined business, called Franklin Templeton Investment Sol