The value of private equity (PE) backed deals globally stood at $43.3 billion in the April-June quarter of 2010 (calendar year), registering a 60 per cent jump over the previous quarter, says a latest study. In the January-March period, the value of such 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, up from 356 earlier.
“Despite continuing challenges in the buyout market in this post-credit crunch landscape, deal flow in the second quarter represents the strongest quarter for buyout deals since the onset of the financial crisis in 2008,” says 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 Q2, with 67 deals accounting for an aggregate deal value of $5.6 billion. This is a 40 per cent rise from the previous quarter, 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, compared with $10.3 billion in the previous quarter.
