April 19, 2021
Private Equity: Global Deal Value Soars in Q1
According to White & Case’s M&A Explorer blog, global PE deal value during the 1st quarter of 2021 reached levels that haven’t been seen in almost 15 years. Here’s the intro:
Global private equity activity continued its winning streak in the first quarter of 2021, building on the dramatic return to form witnessed in Q4 2020. PE dealmakers conducted a total of 1,671 deals valued at US$360.3 billion in the first quarter—a more than twofold jump in value year on year, while volume rose 28%. This represents the highest total value in any quarter since Q2 of 2007.
Q1’s healthy activity was fueled by a steep increase in exit value in the first quarter as confidence continues to grow in the market after the challenges posed by COVID-19 in 2020. A total of 711 deals worth US$214 billion in Q1 represented a 128% year-on-year value increase, while volume rose by a healthy 34%.
Buyout activity also displayed a strong start to the year. Value reached US$296.6 billion in the first quarter—up 110% compared to Q1 2020. Volume rose 27% over the same period to 1,157 deals.
The blog says that Western Europe & Asia both saw impressive gains during the quarter – but the US blew the doors off. Half of the quarter’s top 10 PE deals were snagged by US firms, and a total of 713 US deals valued at $239.4 billion were announced. That’s more than twice the value of Q1 2020’s US deals, and the highest Q1 value on record.
– John Jenkins