Is the Mega Buyout Back?


February 22, 2013

Preqin ‘s latest analysis of deal activity says that there is scope for more mega-sized buyout deals in the coming months. It points to activity so far in 2013, which saw the two largest PE-backed public-to-private transactions announced since the buyout boom period of 2006-2007.


The two deals are: the USD24.4bn Silver Lake-backed privatization of Dell Inc. and the Berkshire Hathaway and 3G Capital-backed buyout of H.J. Heinz Company. Preqin data suggests a steady growth in the number and value of large-cap deals over recent years, from the low level of 16 deals valued at an aggregate USD 34bn in 2009 to 75 large-cap deals announced in 2012 with an aggregate deal value of USD 137bn. (See graphic above).


The trend combined with the fact that buyout fund managers still hold a large amount of uninvested capital, currently standing at USD 346bn across the whole buyout spectrum, there is a good indication of a potential return of the mega buyout. (Image source: preqin)

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