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Value of UK private equity exits falls by more than 50% in H1

Tuesday 26 June 2018 11:33 AM


The value of private equity-backed sales in the UK fell from £13.6bn in the second half (H2) of 2017 to just £6bn in the H1 2018, according to figures from the Centre for Management Buy-out Research (CMBOR) at Imperial College Business School sponsored by private equity firm Equistone and bank Investec.

The largest exits in the UK so far in 2018 are the £1bn sale of software provider to GP surgeries Iris to Intermediate Capital Group (ICG) and the recently completed £1bn sale of Leeds-based consumer credit bureau Callcredit Information Group to New York-listed TransUnion.
The collapse in the value of UK exits came in the context of a wider European slowdown, although the UK was the worst performer.

The overall value of exits in Europe fell by nearly a third (30 per cent) from €56.9bn (£50bn) in H2 2017 to €39.9bn in the first six months of this year.

Shaun Mullin from Investec, said he was surprised at how “stark” the drop off in exits was but said: “The numbers don’t lie, there has been a slowdown, particularly at the larger end of the market.”

Mullin said there were a number of possible factors for the slump in sales including relative value of UK assets compared to European assets and worries about the slip in the value of the pound and the outcome of the Brexit negotiations.