Private Equity Buyout Deals Value Up 53% in Q2 '14 - Hedge Fund Alpha (formerly ValueWalk Premium)
Private euity buyout deals aggregate value

Private Equity Buyout Deals Value Up 53% in Q2 '14

According to Preqin, the value of private equity-backed buyout exits in the second quarter of 2014 saw a notable jump up from Q1 2014, with 392 exits valued at $138bn in Q2 2014 compared to 331 exits valued at $90bn in the first quarter. This is the highest quarterly exit value for any quarter in the period since the financial crisis, and the second highest number of exits in the same period, behind Q4 2013 which registered 405 exits.

Private Equity Buyout Exits Deals

The second quarter of 2014 saw a drop in deal flow, however, with a total of 743 private equity-backed buyout deals announced during the quarter valued at $78bn, compared to 733 deals valued at $82bn in Q1 2014. This represents a 1% rise in the number of deals yet a 5% drop in aggregate deal value.

Private Equity Buyout Exits Deals

Other Key Facts on Private Equity Buyout Deals:

  • North America witnessed 398 private equity-backed buyout deals valued at $39bn in Q2 2014, a 20% decrease in the aggregate value compared to Q1 2014.
  • The aggregate value of European buyout deals in Q2 2014, at $27bn, was 69% higher than it was for deals in Q1 2014.
  • The aggregate value of buyout deals in Asia was down, with $8bn worth of deals in Q2 2014 compared to $13bn in Q1 2014.

Private Equity Buyout Exits Deals

  • Forty percent of all deals in Q2 2014 were leveraged buyouts, and these accounted for 71% of the aggregate value of global deals in Q2 2014, compared to 54% of the total value that such deals accounted for in the previous quarter.
  • Add-on transactions represented 33% of the number of private equity-backed buyout deals in Q2 2014 and 12% of the total deal value, a decrease of three percentage points and 16 percentage points, respectively, on the previous quarter.

Private Equity Buyout Exits Deals

  • The largest private equity-backed buyout deal this quarter was the announced $5.4bn acquisition of Gates Global Inc. by The Blackstone Group L.P. (NYSE:BX).
  • The largest exit this quarter is the announced sale of Biomet, Inc., backed by Blackstone Group, Goldman Sachs Merchant Banking Division, KKR & Co. L.P. (NYSE:KKR) and TPG, to Zimmer Holdings, Inc. (NYSE:ZMH) for $13.35bn.

Private Equity Buyout Exits Deals

For more information and analysis, please see the factsheet that follows.


“The growing stability of economies and markets around the world is having a positive impact on the exit environment for the private equity industry. Private equity firms selling their stakes in portfolio companies throughout the second quarter of the year have achieved the highest quarterly value in the post-crisis period.

On the flip side, growing markets and higher competition are making it harder for private equity buyers, with deal flow falling over the past two quarters. As economies strengthen further, this should present even greater exit conditions for private equity firms to sell on companies, but may prove problematic for the industry to identify good value investment opportunities, especially in a period of strong fundraising and increasing dry powder levels.”

Christopher Elvin – Head of Private Equity Products, Preqin



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