Global PE investment up 60% to $43 bn in Q2

The value of private equity- backed deals globally stood at $43.3 billion in the April-June quarter of 2010, registering a 60 per cent jump over the previous quarter, says the latest study.

In the January-March period of 2010, the value of such private equity (PE) backed deals was $27.1 billion, according to research firm Preqin.

In terms of number of deals too, there was a quarter-on-quarter increase, with 411 PE deals being announced in the second quarter of 2010, up from 356 in Q1 of 2009.

"Despite continuing challenges in the buyout market in this post-credit crunch landscape, deal flow in Q2 of 2010 represents the strongest quarter for buyout deals since the onset of the financial crisis in 2008," said Preqin Managing Analyst (Buyout Deals) Manuel Carvalho.
    
The quarter has seen a notable surge in the buyout activity in the US, with 175 deals valued at $26.7 billion, more than double from the previous quarter.
    
In addition, there was increased deal flow in Asia and the rest of the world in the second quarter of 2010, with 67 deals accounting for an aggregate deal value of $5.6 billion. This is a 40 per cent rise from Q1 of 2010, which saw 39 deals with a deal value of $4 billion.
    
Aggregate deal value in Europe remained relatively stable with $11 billion in the second quarter of 2010, compared with $10.3 billion in the previous quarter.
    
PE transactions, valued less than $100 million, accounted for 50 per cent of the total capital invested during the quarter under review.
    
The largest PE-transaction was acquisition of Extended Stay by a Centerbridge Capital Partners-led consortium, including the Blackstone Group and Paulson & Co, for $3.9 billion followed by $3.4 billion buyout of Interactive Data Corporation by Warburg Pincus and Silver Lake.
    
Interestingly, 9 of the 10 largest deals announced globally during Q2 of 2010 took place in the US.