It looks set to be a poor year for private quity with the overall value of private equity deals in November 2011 dipping 12 per cent to $18.26bn from $20.81bn in October to provide the second lowest result of the year to date.
The figure stands in even starker contrast to the same period for last year and is 49 per cent lower than the $35.78bn which made November 2010 the highest value month of 2010 for private equity investment, according to the latest report from Zephyr and Bureau van Dijk.
The volume of transactions followed a similar, if less dramatic, trajectory. In the month under review 224 deals were recorded, 14 per cent fewer than October’s 259 and 30 per cent fewer than the 321 announced in the same period this time last year.
In November there were three deals worth more than $1bn, all of which were institutional buy-outs. Worth a combined $10.89bn, the transactions represented 60 per cent of the month’s total value.
Targets operating in the primary sector attracted $7.21bn in private equity-backed deals in November, more than double the $3.49n brought in by companies in machinery, equipment, furniture and recycling, which placed second. The result is particularly impressive given that the industry recorded no private equity funding whatsoever in either September or October and just $622m in November 2010.
It was the month’s largest deal which accounted for the primary sector making the number one position. Itochu, Kohlberg Kravis Roberts & Company, NGP Energy Capital Management and Crestview Advisors agreed to buy US oil and gas exploration and production services firm Samson Investment Company for $7.2bn.
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