East Mids PE market slumps
The East Midlands private equity-backed buyout market took a knock in 2011 with just three deals recorded, according to new research.
Data published by the Centre for Management Buy-Out Research (CMBOR) said that the trio of transactions amounted to £82.2m – a dramatic drop from its 2010 figure of 13 deals reaching £1.1bn in value.
The East Midlands figures were in stark contrast to the West Midlands where the value of private equity backed buy-outs in 2011 reached £1.1bn, compared to £801.3m in 2010.
CMBOR's research was sponsored by Equistone Partners Europe (previously Barclays Private Equity) and Ernst & Young.
Nationally, the value of all UK private equity buyouts dropped by over a third (36 per cent) to £12.1bn in 2011 compared with a total value of £18.8bn in 2010.
Phil Griesbach, director at Equistone Partners Europe in the Midlands, said: "Whilst we do not expect a huge boost in activity in early 2012, we are encouraged by the strength of UK manufacturing, the prospect of falling inflation and the international dynamics of many UK companies who continue to expand.
"We are therefore optimistic that 2012 will prove equally resilient for private equity with a cautious economic recovery during the second half."
