With the end of quarter approaching, entry and exit activity for private equity buyout firms looks set to top post-financial crisis highs. For Q2 2011 to date, 611 private equity-backed buyout transactions have been announced globally, for an aggregate value reaching $66.2 billion. This represents a 13% increase in the aggregate value of buyout deals announced in the previous quarter, and a 16% increase for the same period last year. With over a week remaining in the quarter, Q2 2011 is set to surpass the post-Lehman’s high of $67.5bn in deals, which was witnessed in Q4 2010.
With 71% of all deals valued at less than $250 million, small capitalization transactions represent the majority of PE-backed buyout deals announced this quarter. The number of mid-market private equity transactions for this quarter has seen an 8% increase in comparison to the previous record quarter post-financial crisis, with 23% of all private equity-Backed buyout deals falling into between $250 million and $1 billion. As a percentage of total deals announced in both Q4 2010 (the previous record quarter) and the current quarter to date, large and mega-market buyout deals represent approximately 7% of the number of all deals announced for these respective periods.
Notable private equity-backed buyout transactions announced for Q2 2011 include: The €2.1 billion secondary acquisition of Spie by a consortium of investors led by AXA Private Equity, Clayton Dubilier & Rice and Caisse de depot et placement du Quebec from current owner PAI Partners. In addition, Kohlberg Kravis Robert has acquired CapSugel from Pfizer for $2.38 billion and Infor Global Solution, a Golden Gate Capital backed portfolio company, has completed a $2 billion buyout deal for Lawson Software.