PE firms to increase role in M&A

The participation of private equity players within the overall M&A market will increase in the second and third quarters of the year, according to The Cinven Index – Private Equity and European M&A: Future Expectations.

The survey, conducted in association with mergermarket, the M&A intelligence company, canvassed the views of over 150 managing directors in leading investment banks, specialising in UK, French and German deals.

Key findings of the report include an increase in deals of between euro85 million and euro850 million, with the greatest growth expected in the euro850 million and euro1.7 billion category. Almost half of respondents expect to see a decrease in rights issues and secondary fundraising, while over 60% anticipate that the volume of companies seeking to delist from stock markets will increase in the next six months.

The overall sentiment of the survey outlines the potential for the rapid development of the private equity market in continental Europe and while London dominates the European buyout scene, the pace of restructuring is seen as increasing in Europe as a whole.