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Deals by Value Band and Investment Type during 2011 and 2012 YTD (As of 25 October 2012)

by Jessica Hull

  • 26 Oct 2012
  • PE

So far in 2012 YTD (as of 25 October 2012), private equity-backed buyout deals have accounted for 46% of the number of deals globally and two-thirds of aggregate deal value. In comparison to last year, the proportionate number of buyout deals has only increased by 2%, whereas the proportion of aggregate value attributed to buyout deals has increased by 9%. This could be explained by the increase in the proportion of aggregate deal value attributed by large-cap deals (those valuing at $1bn or more) increasing from 47% to 52% from 2011 to 2012 YTD, yet the proportionate number of large-cap deals has remained consistent at 7%.

The proportion of growth capital deals by number and aggregate value is virtually unchanged in 2012 YTD when compared to 2011. In contrast, the proportion of the number and aggregate value of deals in bolt-on transactions has fallen from 36% to 32% and 13% to 11% respectively between 2011 and 2012 YTD. This slightly decreased use of add-on transactions by fund managers perhaps reflects a slight rebound in business sentiment as fund managers look to deploy their capital through other investment types.

In 2012 YTD, 7% of the number and 16% of aggregate value of buyout deals have been public to private transactions; in 2011 6% of the number and 24% of aggregate value of deals occurred in this investment type. This could perhaps indicate that fund managers are slightly less attracted to purchasing large-cap companies from the public markets, as this investment type typically requires a sizeable investment to acquire a stake in a listed company.

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