Buyouts publisher Thomson Reuters tracked 530 LBO deals in 2009 through Dec. 15. Those with reported financial terms had a combined valuation of about $34.7 billion. That tally pales when compared with 2008’s deal activity, when there U.S. firms closed 872 LBO transactions with a total disclosed valuation of $137.0 billion.
The largest sponsor-backed transaction in 2009 is telling of the difficult economic climate. It involved Delphi Corp.’s bankruptcy. The Troy, Mich.-based auto part maker agreed to an $11.0 billion reorganization with debtor-in-possession lenders,
Fundraising retracted from the free flowing pledges obtained during the past few years. In 2009 through Dec. 18, about $64.5 billion in commitments were secured. The industry obtained $264.1 billion in commitments in 2008 and reached $300.8 billion in 2007. The 2009 level comes closer to the $71.9 billion secured back in 2004.
One group that struggled in particular in 2009 was mezzanine funds, which collected just $3.01 billion in commitments in the past 12 months. In 2008, these funds collected $26.1 billion in pledges.