There were 324 private equity backed buyouts exits in the second quarter of 2013, valued at total $92 billion which is an increase from $50 billion in the first quarter. The value is also highest since the second quarter 2011 where 364 exits were valued at an aggregate of $128 billion, says a press release from Preqin.
However, in the second quarter private equity-backed buyout deal flow declined with only 606 deals announced all around the world valued at $62 billion compared to 678 deals, in Q1 2013, valued at $86 billion.
Region wise buyout exits
The total value of deal at Europe was $27 billion in Q2 2013, as against $8 billion in Q1 2013. The aggregated European deal value in the fourth quarter of last fiscal was $27 billion.
The buyouts in North America totaled 306 valued at $29 billion in Q2 2013, a decline of 59 percent in terms of the aggregate value compared to the prior quarter of $71 billion.
In Asia, the aggregate value of the deal declined to $2 billion in second quarter 2013, which was the lowest value of deal in Asia since third quarter of 2008 in which the value was just $1 billion.
The small cap bracket of less than $250 million incorporated 73 percent of deals in the second quarter of 2013. 59 percent of all deals in Q2 2013 were valued at less than $100 million.
Buyout was seen mostly in the Industrial and Information technology area, in the second quarter of 2013, which was the 43 percent of the aggregate deal value.
Second Quarter was favorable for Private equity-backed exits via IPO and follow-on offerings with 73 exits through the public market in the second quarter of 2013, which is highest in any quarter since 2006.
Preqin total value of private equity backed buyout exits
According to Ignatius Fogarty, Head of Private Equity Products, Preqin total value of private equity backed buyout exits in the second quarter is at the second place after 2006 private equity-backed exits. The quarter was favorable for the IPO and follow on offerings which saw 73 exits through the public market during the quarter.
North America witnessed buyout decline by over half compared to the last quarter whereas in Asia, the value was the lowest in the region after the third quarter of 2008. “European aggregate deal value showed signs of recovery.”