Released yesterday, preliminary figures published in the SL Capital Partners show transaction volumes bounced back in the fourth quarter, following a weak third quarter.
A total of 326 deals were completed, the highest total since the final quarter of 2012, with the total value of €23.6 billion up 40 per cent on the €16.9 billion transacted in the third quarter, the report found.
While the total number of deals was down for the second consecutive year, at 1,272 deals, buyouts enjoyed a strong fourth quarter, according to the report.
“Value showed more significant growth during the final months of 2013, with the Q4 figure of €21.1 billion up 37 per cent on the €15.4 billion recorded in Q3,” the report said.
“This strong performance offset some volatility during the year, helping 2013 achieve a total value of €69.2 billion, consistent with the prior period,” it said.
The key growth remains in the mid-market €100 million to €1 billion transactions, according to the report.
“The year 2013 has proven to be a more volatile year than expected, with the positive developments in Q4 resulting in a year of consolidation,” SL Capital Partners managing partner and CIO Peter McKellar said.
“Momentum is strong in the core European middle market deals of €100 million to €1 billion, which reflects the increased confidence of the private equity funds to invest against a background of an improving macro-economic outlook for Europe, primarily in the UK and Germany.
“Vendors are prepared to transact and this is supported by availability of leverage,” he said.
“The pipeline of transactions as we enter 2014 looks to be positive and, as M&A activity picks up more generally, we expect this year to be one of growth.”
