rtmark
LearnBonds.com

Europe dominates $143bn of private equity deals cut outside US

Companies completed $143bn of deals outside the US in the first half of this year. This is almost 60% of the world total, according to data compiled by Bloomberg. That’s on track for the highest full-year proportion in almost two decades and about half of this year’s non-US private equity activity came from Europe.

As the US grapples with a pandemic that’s still infecting thousands by the day, the euro strengthened against the dollar on news of a possible economic stimulus package to be rolled out before year’s end.

“This points to the long-term trend for larger deals outside the US as international markets mature,” said Scott Moeller, director of the M&A Research Centre at City, University of London. “It also appears Covid-19 is hitting the US more strongly, which is impacting the ability to do deals despite the large amounts of unspent money available to PE funds.”

Private equity firms started 2020 with more cash on hand than ever, according to data provider Preqin, and capital rose to nearly $1.5trn as of 30 June as dealmaking slowed. Capital-raising also dropped in the second quarter as lockdowns kept investors at home.

With companies taking longer to do business as dealmakers unable to meet in person and companies are going global to adapt. European private equity activity was boosted by the industry’s largest announced deal this year — the €17.2bn ($19.7bn) purchase of Germany-based Thyssenkrupp’s elevator unit by an Advent International and Cinven-led consortium.

European economies seem to be emerging quicker from lockdown and dealmakers are looking for more companies to put units up for sale during the second half. Unilever’s tea unit is up for grabs with Advent, Bain Capital and Blackstone Group among potential suitors, it was reported in June.

Meanwhile, brewing giant Molson Coors Beverage is considering selling about €3bn worth of European assets, in a potential deal that’s expected to attract private equity interest, according to people with knowledge of the matter.

Private equity firm CVC Capital Partners completed a €21.3bn fundraising for its eighth flagship fund, its largest to date.

“Europe experienced the virus earlier and is now coming out of it earlier,” said Ajit Nedungadi (pictured), a managing partner at TA Associates. “This improvement gives financial sponsors more visibility on future earnings and increasing confidence.

While first-half deal flow favours Europe, New York’s buyout giants are still busy. The US still accounts for the lion’s share of private equity transactions with this year’s second-largest deal to date involving a consortium including Global Infrastructure Partners and Brookfield Asset Management Inc. paying $10.1bn for a stake in Abu Dhabi owned pipelines. Blackstone’s purchase of a portfolio of UK student accommodation was also among the top five deals.

Check out the best investment apps here.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

What we like

  • 0% Commission
  • Trade Stocks Via CFDs
  • Authorized & regulated by the FCA

Min Deposit

$100

Charge per Trade

Zero Commission

Rating

Visit Now

76.4% of retail investor accounts lose money when trading CFDs with this provider.

Available Assets

  • Total Number of Stocks & Shares+2000
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Future
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • Dax Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire transfer
  • Credit Cards
  • Bank Account
  • Paypal
  • Skrill
Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Galina Mikova

Galina is a Hubspot-certified Technical Writer with over 10 years of experience in working with Fortune 500, private investment, banking, FOREX and niche tech companies as well as crypto and blockchain startups. She has a solid background in FinTech and blockchain technology.