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Private Equity-Backed Deals and Exits Reach Post-Financial Crisis Highs

by Kouji Sonobe

  • 07 Jul 2011
  • PE

The second quarter of 2011 saw 674 Private Equity deals with an aggregate value of $75.6bn announced, the highest level in both number and value since Q3 2008. The aggregate value of deals represents a 33% increase on the previous quarter’s numbers. In addition to private equity-backed entries, the quarter to June saw exit volume and value surpass the previous record level set in the fourth quarter of 2010, with 309 exits valued at approximately $120.1bn announced in the past three months.

Notable private equity-backed deals that have been recently announced include the acquisition of a 70% stake in Frac Tech for $3.5bn by RRJ Management, Temasek Holdings, Chesapeake Energy Corporation and the CPP Investment Board in April 2011, and the SEK21bn ($3.3bn) acquisition of Securitas Direct by Hellman & Friedman and Bain Capital from EQT Partners in June 2011.

On the exit side, noteworthy transactions include the €9.6 billion trade sale of Nycomed by Nordic Capital to Takeda Pharmaceuticals.  Nordic Capital acquired Nycomed in 2005 through a secondary buyout from a consortium of Private Equity firms, which included AlpInvest Partners, Blackstone Group and DLJ Merchant Banking Partners. Other notable private equity-backed exits include the sale of Skype by the investor consortium Silver Lake, CPP Investment Board, Andreesseen Horowitz and Index Ventures to Microsoft Corporation for $8.5bn in May 2011, and the £6.8bn initial floatation of First Reserve-backed Glencore International in May 2011.

To find out more about the break-down of Private Equity Backed deals and exit please refer to our recent press release.

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