North West private equity buyouts skyrocket 92%

The total value of private equity buyouts across the North West rose 92% during H1 2016, despite the economic uncertainty ahead of the EU referendum.

New data from the Centre for Management Buyout Research (CMBOR) showed that deals in the region hit £449m over the first six months of 2016, up from £234m during the second half of 2015.

The North West was found to be leading the way in the North of England, and fell behind London only in terms of deal value. Across the capital, £4.69bn of private equity buyouts were completed.

Deals in the lower-mid market buyout range varied from £10m to £185m, including the £60m acquisition of EnServe Group, a provider of infrastructure support services, and the sale of Wilmslow health and safety advisors Citation for £185m.

Steve O’Hare, a partner at Equistone Partners Europe in the North of England, which sponsored the research, said: “Despite uncertainty surrounding Brexit, dealmakers are still getting transactions over the line especially in the lower-mid market.

“There are a number of investors in the North West targeting quality assets and we expect activity levels to gain momentum once the referendum has concluded.”

John Clifford of Investec Bank, a new CMBOR co-sponsor, said the stats “reflect a normalisation” of private equity activity.

He continued: “The market is cooling off, with the EU referendum one of a number of challenges currently facing deal-doers.

“This has made larger deals more difficult to complete, but we are encouraged to see the lower mid-market persevere – it highlights private equity’s ability to truly invest across all cycles.”