Private equity (PE) players across the world have offloaded stakes worth $85 billion so far in the second quarter of the 2011 calendar year, a rise of 10 per cent vis-a-vis the previous quarter.
According to research firm Preqin, 201 PE-backed exits have occurred so far in the second quarter of the 2011 calendar year, with an aggregate exit transaction size of $85 billion.
This is 5 per cent higher than the record level reached during the fourth quarter of 2010, when 325 exits with a total value of $81.3 billion were announced.
The January-March quarter of 2011 saw exits worth $77.3 billion, 10 per cent lower than the $85 billion worth of exits seen so far in the second quarter.
“In recent quarters, we have witnessed a surge in exit activity. Exit values are at record levels as fund managers take advantage of current market conditions to exit investments made both during the buyout boom-era and post-financial crisis.
“However, the increase in exit activity looks set to ease the difficult fund-raising conditions; capital is increasingly being returned to investors and this will be committed to new funds if investors intend to maintain their current allocation levels,” PE Deals Manager Mr Manuel Carvalho said.
The largest PE buyout-backed exit that has been announced in the second quarter so far is the acquisition of Nycomed by Japanese drug-maker Takeda Pharmaceutical Company from Nordic Capital, DLJ Merchant Banking Partners (Credit Suisse) and Avista Capital Partners for €9.6 billion (about $14 billion). In terms of regions, Europe accounted for most of the exit deal value, followed by North America and Asia.
The European exit value reached $57.9 billion in the second quarter, double the level seen in Q1 and almost five times the $12.7 billion in exits seen during the same quarter of 2010.
North American exits currently stand at $23.7 billion and look set to remain at similar levels to previous quarters. There were over $43 billion worth of exits in North America in Q1, 2011.
In Asia, exits worth $3.4 billion have taken place in Q2, 2011, till date. Almost half of the exit value has been in the industrials and healthcare sectors. However, the report said that Asia exit value is likely to match the $ 5.2 billion level seen in Q1, 2011.
Overall, the technology sector accounts for one-fifth of exits and 15 per cent of exit value. The consumer and retail sector represents 17 per cent of the number and 12 per cent of the value of exits.