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The so-expected "State of European Private Equity Report - H1 2024" from Gain.Pro provides a comprehensive overview of the private equity landscape in Europe. The report analyzes various aspects, including entries, add-ons, exits, holding periods, multiples, growth rates, and margins. Regarding entries, the report highlights a decline in buyout deal activity in 2023, attributed to high interest rates increasing borrowing costs for PE sponsors. However, Q1 2024 data indicates a promising trend, with the deal count exceeding both 2023 and pre-pandemic levels, suggesting a potential bottoming out of the market. In terms of add-ons, the report emphasizes the value of add-ons in driving revenue growth, cost synergies, and multiple arbitrage. Approximately 47% of PE-backed businesses employ a buy-and-build strategy, with Financial Services and Services leading in add-on activity. The report also highlights a meaningful slowdown in exits in 2023, with exit multiples contracting sharply. Holding periods for assets that exited remained elevated, with roughly 55% staying longer than 5 years in the portfolio. The share of strategic exits has risen to 48% in 2023, favoring strategic buyers who finance acquisitions via their balance sheets. Overall, the report showcases the strongest revenue growth for PE-backed assets in years, with TMT, Financial Services, and Science & Health leading the pack. The expansion of EBITDA margins emphasizes the significance of operational efficiency and strong cash flows in de-risking transactions for buyers. #privateequity #buildandbuy

Gain.pro just released their in-depth report on the state of private equity in Europe for H1 2024. What did we find? ◾ Buyout deal activity in 2023 was the lowest it’s been in 6 years (down 32% from peak) ◾Add-on activity also took a hit in 2023 (down 31% YoY) ◾Exits slowed down meaningfully in 2023 but recent data suggests that exits have now stabilized. ◾Roughly 55% of assets that exited in 2023/24 stayed longer than 5 years in the portfolio. Read the full report for even more insights and trends from H1 2024: https://lnkd.in/ewTpWpDC #privateequity #report

Great insight into the M&A market.

M&A market trends in 2024: Signs of resurgence on the horizon Lessons from 2023 fuel hope for M&A success despite the prevailing challenges

📢 Financial services M&A activity picked up across Europe in the first 6 months of 2024, but remains muted, according to the results of our half-year analysis out today. The findings reveal: ➡Mild recovery: Deal numbers are up 38% from the latter half of 2023 but are 3% down from the same period last year. ➡Value dip: Total deal value has dropped to €17.1bn from €23.3bn year-on-year, even with a few big-ticket deals in the mix. ➡Spanish surge: A potential major deal in the Spanish market could boost deal value in the second half of this year. Overall, market resilience is evident despite prevailing high interest rates and global economic challenges. And if economic improvement continues as expected, then deal activity across Europe’s financial markets should continue to rise in the second half of this year. 🔍Read our full analysis, including a sector-specific view, here: https://lnkd.in/eRSb36rU #FinancialServices #MergersandAcquisitions #CorporateFinance

Our quarterly M&A and Capital Markets newsletter provides analysis and details about the latest trends. Read the most recent edition to find out what to watch for in the second half of the year. https://lnkd.in/g8n-EvtT #MergersAndAcquisitions #MnA

Delivering growth today, visibility on future opportunities. Today we published our interim results for the six months ended 30 Sep 2023. Selected highlights: 📈 Total AUM of $81.0bn, up 3% compared to 31 Mar 2023 (1); 📊 Fee-earning AUM of $64.2bn, up 4% compared to 31 Mar 2023 (1); 🫱🏽🫲🏽 Fundraising in line with our expectations at $5.0bn, with demand both for our flagship strategies ($3.2bn) and scaling strategies ($1.8bn); 🪙 Group profit before tax of £241.9m (H1 FY23: £35.6m); 👩🏽💼 Interim dividend of 25.8p per share, in line with policy (H1 FY23: 25.3p per share). Explore: https://lnkd.in/ejhtFEMC #PrivateMarkets #PrivateCapital #Alternatives Capital at risk. Past performance is not a reliable indicator of future returns. Footnote: (1) On a constant currency basis

2023 has been a challenging year for investors as M&A activity was hit by concerns about the macroeconomic environment and the impact of higher interest rates. While those challenges haven’t fully abated, 2024 holds the potential for dealmaking to show some improvement. ➡️ To find out more, click here: https://okt.to/8FhlY0 #AMon #MandA #TransactionAdvisory

How is the private equity market doing fundamentally? Is growth slower or faster? We analyzed the data 👇🏻 PE-backed assets have never been in better shape. 🚀 Growth is the strongest it has been in years, with PE-backed assets in Europe growing 18.8% YoY - well above their pre-pandemic averages. 📈 EBITDA margins for PE-backed businesses have been expanding too. They are up by over 170 bps over the last 7 years. Learn more about which sectors and regions are growing the fastest in our latest report: https://okt.to/tvGB1K #privateequity #H12024