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Q1 2010 Private Equity Global Buyout Deals Update

by Helen Wilson

  • 01 Apr 2010
  • PE

The Q1 2010 private equity global buyout deals update shows that there has been a 35% decrease in aggregate deal value from Q3 2009. 307 buyout deals were announced worldwide during Q1 2010 compared to 349 with an aggregate value of $41.2 billion in the previous quarter. However, dealflow is up in Q1 2010 compared to the first three quarters of 2009, with the first quarter of 2010 seeing more than double the aggregate deal value than during the same period in 2009.

The aggregate deal value in the US registered a decrease from the previous quarter with a total 164 deals accounting for $11.7 billion, half of the $23.5 billion aggregated by such deals in the previous quarter. Yet, dealflow in the US over Q1 2010 was stronger in terms of aggregate value than for any of the first three quarters of the previous year.

Aggregate deal value in Asia and Rest of World also fell from the previous quarter, from $6.3 billion in Q4 2009 to $3.9 billion in Q1 2010. The Q1 2010 figure was similar, however, to the Q2 and Q3 2009 figures. Aggregate deal value in Europe remained relatively stable, with the aggregate deal value of $11 billion in Q1 2010 almost the same as the $11.4 billion total in Q4 2009.

Almost half of all deals that occurred globally during Q1 2010 were leveraged buyouts, with such deals accounting for 60% of the aggregate deal value worldwide during the quarter. Add-on deals made up almost a quarter of all deals completed during the period, and growth capital investments accounted for 17%.

50% of all buyout deals that occurred globally in Q1 2010 were valued at less than $100 million. Mid-market and large deals accounted for the majority of capital invested by private equity firms in Q1 2010, with deals valued at $500-999 million and over $1 billion representing 33% and 29%, respectively, of total aggregate deal value globally.
 
Q1 2010 has seen a surge in secondary buyouts, with 24 such buyouts announced during the quarter, representing $7 billion in aggregate deal value and surpassing the $5.1 billion in aggregate deal value of 43 secondary buyouts completed during the whole of 2009. In particular, Europe has played host to some noticeable buyouts, including KKR’s acquisition of Pets at Home for £95 million from Bridgepoint Capital, and Triton’s acquisition of Ambea from 3i and GIC for €850 million.

For more information about global buyout deal activity in Q1 2010 please see our Q1 2010 Private Equity Global Buyout Deals Update.

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