Private Equity-backed M&A up 23% over 2012

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Private Equity-backed M&A up 23% over 2012.

Thomson Reuters Investment Banking Scorecard

Private Equity-backed M&A up 23% over 2012

Hellman & Friedman's $4.4 billion purchase of Chicago-based insurance brokerage Hub International Ltd pushed the value of announced private equity-backed M&A to $196.4 billion so far this year, a 23% increase compared to a year ago and the strongest period for private equity-backed M&A since 2007. US targets, which account for 59% of overall global private equity-backed M&A this year, has increased 45% compared to last year at this time. Consumer staples, high technology and energy & power deal making represents 56% of financial sponsor volume this year, up from one-third during year-to-date 2012.

Bank of America Merrill Lynch, which is a financial advisor to Hub International along with Morgan Stanley and Stephens, tops the list of financial advisor for private equity deals so far this year.

Strongest YTD for France ECM since 2007

The $701 million sale of a 10% stake in French electronics retailer Rexel SA by Ray Investments brings equity capital markets activity in France to $16.9 billion, more than double activity seen last year at this time and the strongest year-to-date period for French ECM activity since 2007 ($20.9 billion). Industrials ECM activity, led by five separate offerings from EADS or its shareholders, accounts for 52% of French ECM activity this year, followed by retail (13%) and energy & power 12%. Follow-on common stock offerings account for 85% of overall activity in France this year, down from 89% last year at this time, while convertible offerings account for 15%.

Societe Generale maintains the top spot for French ECM underwriting with 16.6% market share, followed by Goldman Sachs (14.2%) and Bank of America Merrill Lynch (13.8%).

US Debt Private Placements Fall 11%

US traditional debt private placements totaled $20.9 billion during the first half of 2013, a 10.5% decline compared to the first six months of 2012 and the slowest opening period for debt private placements in the United States since 2010. By number of deals, US debt private placements increased 13% compared to first half of last year. United States issuers accounted for 43% of debt private placements during the first half, followed by the United Kingdom (19.6%), which claimed the largest offering of the a half, a $909 million senior note placement for Brookfield Utilities UK PLC.

Bank of America Merrill Lynch topped the list of placement agents during first half 2013 with 21.7% market share, followed by JP Morgan, which registered a 8.7 point market share increase over first half 2012.

Source: Thomson Reuters

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