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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
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