PE deals in Europe up for first time in 2002
EUROPE- The total value of European private equity deals rose in the third quarter of 2002 for the first time this year, according to information provider, Initiative Europe. European private equity transactions had a total value of e11.2bn in Q3, representing a 12% increase over the previous quarter.
Deal volumes, however, recorded a 23% fall in the third quarter, down from 293 in the second quarter to 226 in Q3.
The increase in total value of European private equity deals was driven by an increase in the value of buyout and later-stage deals. Buyout activity accounted for e7.9bn of the total value, and volumes fell by 1.4% , compared with a 35% drop between the fourth qarter of 2001 and the first quarter of 2002.
According to Initiative Europe, the growth capital market grew by e1bn to e3.2bn, its highest market value since Q3 in 2001. Although, volumes declined in this sector also, falling for the fifth consecutive quarter to only 121.
The European venture capital market continued to suffer, and early-stage investment recorded another fall, with only 39 deals completed in the third quarter, from 49 in Q2.
In terms of regional activity, the UK and Ireland increased its share of all European private equity transactions. The most active Continental European markets were the French and German speaking regions, which accounted for 23% and 18% of all dealflow in Q3, respectively.
Inititiative Europe provides specialist information on the European private equity and venture capital markets.