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Private Equity Buyout Deal Activity Slows in Q3 2018

by William Clarke

  • 08 Oct 2018
  • PE

There were 1,205 private equity-backed buyout deals announced in Q3 2018, worth a combined $93bn. Preqin expects these figures to rise by up to 5% as more information becomes available, but nonetheless the quarter seems unlikely to match the $129bn announced through 1,274 deals in Q2.

Deals made in North America accounted for the largest proportion of activity, with 637 deals announced worth $51bn, while Europe saw 430 deals worth $23bn and Asia saw 69 deals worth $13bn.

Add-ons and buyouts accounted for the largest proportions of the number of deals announced, with 41% and 39% respectively. Buyouts also accounted for almost half (44%) of deal value in the quarter. Although public-to-private deals accounted for just 1% of the number of deals announced, they accounted for 13% of total deal value. This is predominantly due to two large public-to-private deals, including the largest deal announced this quarter: the $6.9bn acquisition of Dun & Bradstreet, Inc. by a consortium of investors.

Buyout-backed exit activity fell, as 484 exits were announced for $85bn. Although a drop from the levels seen in Q2, this is more than was seen in the same quarter last year. Trade sales dominated exit activity, representing 62% of exits announced, and 72% of total exit value.

To see more Q3 2018 private equity deals stats, please visit www.preqin.com/research.

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