Preqin’s Buyout Deals Analyst online service reveals that 326 private equity-backed buyout transactions have taken place in North America since the start of 2015, for an aggregate deal value of $13.2bn. Last year, the number of deals in the region reached 1,963, with a total deal value of $184bn; the highest since 2008.
The industrials sector continues to dominate the North American private equity deals landscape in terms of number of deals in 2015 YTD, however, its prominence is steadily declining. In 2006, deals within industrials accounted for 32% of all private equity-backed deals; so far this year they account for 22% (in 2014 this proportion stood at 24%). Conversely, the information technology sector has seen a significant increase in its market share in recent years and accounts for 19% of the total number of private equity-backed buyout deals in 2015 YTD, an increase of 10 percentage points from 2006.
In terms of aggregate deal value, the fluctuations in industry prominence in any given year are primarily influenced by the changing numbers of large deals in a particular sector. Last year, consumer & retail was the most prominent industry with regards to aggregate deal value in North America, accounting for a quarter of the value of all private-equity backed buyout deals in the region. However, in 2015 YTD, the business services sector accounts for 42% of aggregate deal value, largely due to the recently announced $4.25bn acquisition of OneMain Financial by Springleaf Financial Services, a portfolio company of Fortress Investment Group.
The chart above illustrates the breakdown of private equity-backed buyout deals by value band. Deals under $100mn constitute the largest proportion of deals in 2015 YTD (38%). These deals, however, only contributed 4% of the aggregate deal value. Mid cap deals ($250-$999mn) represent 36% of the number of transactions and 41% of the aggregate value, with large cap deals ($1bn+) accounting for 5% and 46% respectively.