Key Data Points [Overview]:

• Private Equity activity accelerated towards the end of the year, recording 473 buyouts with disclosed value of EUR 55.7bn in Q4, the most active quarter by volume on record.
• As the global pandemic put a temporary halt on conducting deals in the first half of the year, 2020 closed with 1,436 deals, 7.5% down from FY19 volume (1,553 deals). Despite the slight decrease in the number of deals, the overall buyout value hit EUR 180.5bn, the highest figure since 2007 (EUR 234.4bn).
• Despite the strong exit activity in the last three months (271 deals, EUR 53.7bn in Q4), the full-year volume of 791 exits worth EUR 168.9bn fell 18.3% short of FY19’s 968 deals valued EUR 129.5bn.
• The median EBITDA buyout multiple across all industries stands at 12x, marginally down from 12.1x in 2019.

Key Data Points [Sector]:

• Technology remained the most targeted space for buyouts throughout the year, recording 344 deals worth EUR 27.3bn, 22.4% up in volume from 2019 (281 deals, EUR 18bn).
• The Industrials & Chemicals sector took nearly a quarter of the overall buyout value with EUR 42.3bn across 268 deals for the year, the highest annual value on record, driven by the EUR 17.2bn takeover of ThyssenKrupp       Elevator by a Cinven-Advent consortium.
• The Pharma, Medical & Biotech sector, with 148 buyouts worth EUR 21.3bn, reached new annual highs following a six-year consecutive growth in volume.
• The overall deal value in the Financial Services sector has grown 2.5x to EUR 11.7bn across 67 deals in 2020, driven by a 36% stake acquisition in Rothesay       Life by GIC and Massachusetts Mutual       Life Insurance Company for EUR 2.7bn, and Bridgepoint’s EUR 1.3bn acquisition of Financiere       CEP from JC Flowers & Co and CHG       Participations.
• The Consumer sector saw 68 deals worth EUR 13.8bn in Q4, more than in the first six months of 2020 combined (46 deals, EUR 4.5bn in 1H20). By the end of the year, the space registered overall 160 deals worth EUR 19.5bn, 12% down by volume compared to FY19 (181 deals, EUR 8.5bn).

Key Data Points [Activity]:

• Northern Europe, with 196 deals valued at EUR 17.6bn recorded in 2020, managed to exceed the deal volume of last year (183 deals, EUR 11.5bn). Sweden took 40% of the deal volume and half of the overall buyout value in the region.
• Southern Europe registered 243 deals worth EUR 33.5bn for the year, with two-thirds of the deals conducted in the second half of 2020, slight falling short of 2019’s deal volume of 265 deals worth EUR 25.3bn. Italy saw 45 deals valued EUR 2.7bn in Q4, the single most active quarter in terms of deal count on record.
• Despite the strong buyout activity in Western Europe in the fourth quarter (297 deals EUR 41.1bn in Q4), the annual deal count figure (936 deals) is down 10% from 2019 (1,040 deals). The region recorded overall buyout value of EUR 126.6bn for 2020, up 7.7% from last year and the largest annual figure since 2007.

For more European Private Equity themes and our regional trend summaries click here.