Download your copy of the Q2 Pitchbook European Breakdown now to discover deal flow, exits and fundraising across Europe.
Deal volume is down, but deal value is off to a strong start with an estimated €201.8 billion of capital invested over 1,209 deals in 1H 2017. As the political uncertainty in Europe subsides, we expect this strong deal flow to continue throughout the rest o f the year, as PE firms put €195.1 billion in dry powder to work.
- Exits via corporate acquisitions continue their downward trend, on pace for a 33% year-over-year decrease in both value and volume. Weaker corporate activity has reduced exit opportunities, but on the flip-side has eased pricing pressures, which resulted in median EV/EBITDA multiples dropping from 9.2x i n 2016 to 8.3x through the first half of this year.
- So far, the fear of negative economic consequences resulting from Brexit has done little to deter PE investors. Through the first half of the year, 38% of all capital invested in Europe by PE shops was placed in U K-based companies with €60.3 billion invested over 410 deals.
- European PE firms raised €41.6 billion i n commitments over 54 funds through the first half of the year. At the current pace, the European PE industry will raise the most amount of capital in our dataset since
In many ways, European PE activity mirrors the PE landscape in the United States. Deal and exit volumes are on a downward trend and looking at 20% or greater year-over-year decreases if the current pace continues. Despite the slowdown in the rate of investing, fundraising continues to boom, with European PE on pace to surpass the amount of capital raised in 2007—the highest amount of capital raised in our dataset. It will be interesting to see how the rest of the year plays out now that significant political uncertainty appears to be in the rear-view mirror for the time being.
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