Private equity deals reach pre-Lehman levels

Arrow_up_2A surge in global private equity deals in Q2 2011 saw buy-outs reach highs not seen since before the collapse of Lehman Brothers.

There were 674 deals valued at $75.6bn (€52.02bn) announced in the quarter, an increase of 33% from the previous quarter despite increased competition from cash-rich trade buyers competing for assets, said Manuel Carvalho, of Preqin, a research provider.

Interestingly, said Carvalho, larger deals returned in Q2 as 21 deals valued at over $1bn were announced, including four deals valued at over $2.5bn. In Q1 there was only one completed deal valued at over $2.5bn.

Carvalho expects to see a sustained upwards trend in deals as buyout fund managers “continue to sit on approximately $380bn of dry powder”.

©2011 funds europe