1、EUROPEANPE BreakdownQ320222ContentsPitchBook Data,Inc.John Gabbert Founder,CEONizar Tarhuni Senior Director,Institutional Research&EditorialDylan Cox,CFA Head of Private Markets ResearchInstitutional Research GroupAnalysisQ3 2022 EUROPEAN PE BREAKDOWNPublished on October 24,2022Click here for PitchB

2、ooks report methodologies.PublishingReport designed by Megan WoodardDataCharlie Farber Senior Data AnalystOscar Allaway Associate Data ANalin Patel Lead Analyst,EMEA Private CNicolas Moura,CFA Analyst,EMEA Private CIntroduction3Overview4Deals by size and region8Spotlight:UK&Ireland9Exits11Fundraisin

3、g133Q3 2022 EUROPEAN PE BREAKDOWNINTRODUCTIONIntroductionPE dealmaking remained resilient through Q3 2022 despite the worsening macroeconomic picture spreading across Europe.Large deals continued to close and underpin figures despite uncertainty stemming from a combination of headwinds facing financ

4、ial markets.Take-privates and carveouts remained crucial to PE strategies in Q3 2022.Further developments,including currency volatility and fiscal and monetary stimulus,have impacted PE activity.We expect the European dealmaking environment to continue being under pressure in Q4 given declining cons

5、umer and business confidence,rising inflation,interest rate hikes across the continent,and the decline in gross domestic product(GDP)growth,which may lead to recessions across Europe.Through Q3 2022,European PE exit value sustained declines from elevated figures logged in 2021.Despite the challengin

6、g exit environment,volatile public equity markets,and gloomy macroeconomic outlooks,exit value could register the second-largest figure from the past decade at the end of 2022.As bear markets have proliferated across Europe,exits have become less appealing for investors and management teams.Lower va

7、luation multiples tied to major public stocks have naturally raised questions about the accuracy of lofty valuations linked to privately backed companies.An assortment of factors,including geopolitical tension,weak economic growth,spiralling inflation,and interest rate hikes,has impacted exit appeti

8、te.The bulk of exit value was generated in core PE regions including the UK&Ireland and France&Benelux.Exit value via public listings is on pace to record its lowest annual total since 2012.PE fundraising slowed in 2022 YTD as capital becomes more expensive in a hawkish interest rate environment.Dis

9、tributions have fallen due to less favourable exit conditions,and therefore fundraising will be weaker as less capital is available to be reinvested.LPs are adopting a wait-and-see approach before committing new capital to new,less-established GPs given the nervousness of private markets deriving fr

10、om the fall in public markets.Fundraising figures indicate fund sizes could be shifting as we enter a market downturn.PE growth-expansion funds have proven popular through Q3 2022,as investment horizons linked to high-growth companies could generate heightened returns in the long run for GPs and LPs

11、.4Q3 2022 EUROPEAN PE BREAKDOWNOVERVIEWOverview05001,0001,5002,0002,5000500Q1Q2Q4Q2Q4Q2Q4Q2Q4Q2Q2Q4Q3Q1Q3Q1Q3Q1Q3Q1Q3Q1Q32002020212022*Deal value(B)Estimated deal value(B)Deal countEstimated deal countPE deal activitySource:PitchBook|Geography:Europe*As of September 30,2022In Q

12、3 2022,European dealmaking remained resilient,with deal value flat year-over-year(YoY)and deal count increasing 16.9%.However,quarter-over-quarter(QoQ)deal value was down 31.6%and deal count was down by 9.6%as the macroeconomic environment caught up with private equity(PE).We continue observing a tr

13、end towards larger transactions as the average deal size is pacing higher than previous years,at 289.1 million through Q3 2022 versus 215.9 million in 2021.As the macroeconomic picture worsens,we expect due diligence timelines to lengthen and sponsors to become pickier in the investments they make a

14、nd the terms they negotiate.For example,AC Milans owner,Elliott Management,took over 15 months to sell the football club,which eventually fetched a 1.2 billion price tag.In 2021,a leveraged buyout(LBO)takeover bid for the club by World Lab Technologies collapsed,then Elliott rejected a bid from Inve

15、stcorp in early 2022 before finally accepting a bid from RedBird Capital Partners.The deal was further delayed from May to August as Elliott Management,an activist hedge fund founded by Paul Singer and known to specialise in distressed securities,pushed for the deal to be partly financed by high-int

16、erest loans it would benefit from,thanks in part to rising interest rates.In Q3,large deals continued to close involving US-headquartered PE giant Blackstone,which has now participated in four of the top 12 largest deals this year in Europe.UK-based Cobham bought out Ultra Electronics,a software ele

17、ctronics defence contractor,for 3.0 billion in a public-to-private LBO sponsored by Advent International and Blackstone.The deal took one year to close after the UK government launched a probe into national security concerns as Ultra makes highly sensitive defence equipment for Britains nuclear subm

18、arines and its acquirer,Cobham,has US sponsors.We expect the European dealmaking environment to continue being under pressure in Q4 given declining consumer and business confidence,rising inflation,interest rate hikes across the continent,and the decline in GDP growth,which may lead to recessions.Q3

19、 was marked by a flood of interest rate hikes with the Bank of England(BoE)hiking the rate twice in three months,thereby bringing the UK interest rate,also called the Bank Rate,to 2.25%.There were six hikes in 2022.The European Central Bank(ECB),which has been historically slower to hike rates,also

20、increased rates twice in Q3,bringing interest rates up by 75 basis points on September 14 to 1.25%for the refinancing rate,0.75%for the deposit rate,and 1.5%for the lending rate.These hawkish measures are intended to squash inflation,which has been skyrocketing.UK inflation peaked at 10.1%in the 12

21、months leading to September,5Q3 2022 EUROPEAN PE BREAKDOWNOVERVIEWbut the BoE has warned it expects a new peak of 11.0%in October before inflation starts dipping.1 Higher inflation and rising discount rates mean it will become costlier for companies to borrow money,which has been cheap since the Glo

22、bal Financial Crisis(GFC).It will also increase costs at the portfolio company level,as well as decrease valuations due to the higher discount rate.Companies that can pass on the higher costs to consumers,and thus hedge away inflation,will likely be the winners.In 2022,those companies have tended to

23、 be in the energy,infrastructure,and healthcare spaces.The UKs recent fiscal and monetary hops following the former UK Chancellors mini-budget are worth examining.Although the announced measures by former Chancellor Kwasi Kwarteng stood to benefit private markets by scrapping the increase in corpora

24、te tax by 6%,2 for instance,the announced unfunded tax cuts sent the British Pound(GBP)spiralling versus the US Dollar(USD)down to$1.0350/,almost reaching parity,hitting an all-time low versus the USD on September 25.Then on September 28,UK government bonds went through the roof with 30-year gilt yi

25、elds jumping to a 20-year high above 5%.3 That same afternoon,the BoE took emergency action to avoid a meltdown in UK pensions,which were being hit with margin calls as a result of the surge.The solution was to go back to quantitative easing by injecting 65 billion worth of bonds into the economy ov

26、er a 13-day period,a measure known to be inflationary.4 The BoE did however reiterate its intent to continue hiking interest rates,which is why we feel the measures are contradictory.UK-based PE companies will have had mixed feelings about the news as on one side,the cut in taxes and the possible sl

27、owdown in interest rates would benefit portfolio companies by increasing their profits and reducing their cost of debt.But on the other hand,they would be impacted with lower valuations due to the turmoil in public market conditions,and these valuations may prove more difficult to estimate due to th

28、e weakening of the currency.In an extraordinary turn of events,Kwarteng was replaced by Jeremy Hunt on October 14,who reversed the mini-budget policies most notably on tax cuts,which will see a corporation tax increase from 19%-2%0%2%4%6%8%10%12%20000212022*EURO Zone

29、 HCPIUK CPI10.9%10.1%0%1%2%3%4%5%6%2008200920000022*Inflation rate by percentage30-year gilt yieldSource:ONS,Eurostat|Geography:Europe*As of September 30,2022Source:I|Geography:UK*As of September 30,20221:“When will inflation come down?,”the Bank of Englan

30、d,September 23,2022.2:“Private markets to gain from UK mini-budget,”PitchBook,Andrew Woodman,September 23,2022.3:“UK gilt yields rise after plunging on BoE action,”Reuters,William Schomberg,September 29,2022 4:“Bank of England launches 65bn move to calm markets,”the Financial Times,Chris Giles,et al

31、.,September 28,2022.5:“UK corporate tax:U-turn signals the end of Trussonomics,”the Financial Times,October 14,2022.6Q3 2022 EUROPEAN PE BREAKDOWNto 25%starting April 2023,5 thus trimming profits for UK-based PE houses.Take-private deals continued to be a theme of 2022,with six new deals in Q3 worth

32、 a combined 5.8 billion.With public markets in bear territory and assets becoming increasingly cheaper,general partners(GPs)with substantial dry powder are taking public companies private.For example,British waste management company Biffa accepted a lower 1.5 billion takeover bid from US PE firm Ene

33、rgy Capital Partners,lowering its bid from 445 pence per share to 410 pence per share.6 In fact,Biffa had already gone from public to private back in 2008 before rejoining the stock market in 2016.Moving forward,UK companies will be prime targets for foreign PE firms because of the weakening of the

34、pound sterling combined with lower valuations stemming from bear market territory.The business products&services sector continues to lead the charge of deals in Q3,accounting for one-third of all deals.The sector is on track for its strongest year in terms of deal value at 176.3 billion and currentl

35、y represents 37.8%of all deals YTD,the highest since 2006.Although the UK narrowly missed going into a recession at the end of Q3,forecasts suggest that most of Europe will enter a recession in H1 2023.Sectors such as business products&services tend to be resilient in a downturn,while consumer produ

36、cts&services gets hit hardest as discretionary spending 8.110.84.413.56.514.125.221.518.242.221.03320530440002020212022*Deal value(B)Deal count0%10%20%30%40%50%60%70%80%90%100%20000212022*Materials&resourcesITHealthcareFina

37、ncialservicesEnergyConsumerproducts&servicesBusinessproducts&servicesTake-private PE deal activityShare of PE deal value by sector Source:PitchBook|Geography:Europe*As of September 30,2022Source:PitchBook|Geography:Europe*As of September 30,20226:“Bank of England launches 65bn move to calm markets,”

38、the Financial Times,Chris Giles,et al.,September 28,2022.quickly falls as wages do not increase as fast as inflation and layoffs begin.This is essentially what economists label as stagflation:high inflation,slowing economic growth,and high unemployment.In Q3,consumer products&services deal value was

39、 down 52.2%YoY and 30.4%QoQ,a complete capitulation as inflation rose.Many companies OVERVIEW7Q3 2022 EUROPEAN PE BREAKDOWNOVERVIEWhave struggled to complete deals within the sector,including Cineworld,which has gone into bankruptcy,Ted Baker,and Paperchase.Although carveouts have drastically slowed

40、 in terms of deal count this year by 38.4%YoY,deal value continues to be resilient,coming in at 60.3 billion YTD.As interest rates increase and consumer spending falls,companies will seek to strengthen their balance sheets by offloading noncore or nonperforming assets.GPs will be interested in such

41、assets due to the complexity premium often attached with divestitures,and sellers will prefer PE acquirers as 39.338.346.174.659.060.483.672.554.686.560.3422423475552499454479522000022*Deal value(B)Deal count629Carveout PE deal activitySource:PitchBook|Geo

42、graphy:Europe*As of September 30,2022opposed to strategics due in part to less regulatory scrutiny.Q3s largest deal was a divestiture that saw Unilever sell its tea business,Ekaterra,for 4.5 billion to CVC Capital Partners.As Unilever is chasing higher organic growth,it decided to dispose of the com

43、pany behind Lipton,Pukka Herbs,and PG Tips as this product category was maturing in terms of growth.Companies might also seek to divest to raise extra cash on the balance sheet while still retaining control.This is the case of the Porsche initial public offering(IPO),Europes largest IPO since Glenco

44、re listed in 2011.Volkswagen divested of a 25%stake in Porsche at the end of Q3,raising over 9 billion from investors while still retaining a 75%stake.Though not a PE transaction,this is emblematic of trends that are likely to take place in PEportfolios.8Q3 2022 EUROPEAN PE BREAKDOWNDEALS BY SIZE AN

45、D REGIONDeals by size and region0%10%20%30%40%50%60%70%80%90%100%20000212022*2.5B+1B-2.5B500M-1B100M-500M25M-100MUnder 25M0%10%20%30%40%50%60%70%80%90%100%20000212022*2.5B+1B-2.5B500M-1B100M-500M25M-100MUnder 25M0%10%20%30%40%50%60%70

46、%80%90%100%20000212022*SouthernEuropeUK&IrelandNordicRegionIsraelFrance&BeneluxDACHCentral&EasternEuropeShare of PE deal value by size bucketShare of PE deal count by regionShare of PE deal count by size bucketShare of PE deal value by regionSource:PitchBook|Geograph

47、y:Europe*As of September 30,2022Source:PitchBook|Geography:Europe*As of September 30,2022Source:PitchBook|Geography:Europe*As of September 30,2022Source:PitchBook|Geography:Europe*As of September 30,2022Dealmaking activity in the France&Benelux region performed strongly and remains resilient despite

48、 the downturn.The UK&Ireland has often been the number one region for PE dealmaking within Europe,but with Q3 data,France&Benelux has now overtaken it,accounting for 30.4%of 2022 deals YTD versus 27.7%for the UK&Ireland.The rise in deals in the France&Benelux region could be explained by GPs avoidin

49、g UK investments due to currency and political volatility.Having said this,given the recent drop of GBP versus USD,we expect US-based PE firms to scoop up cheaper British companies given that the GBP has fallen 20%versus the USD YTD as of September 27,2022.0%10%20%30%40%50%60%70%80%90%100%2012201320

50、002020212022*SouthernEuropeUK&IrelandNordicRegionIsraelFrance&BeneluxDACHCentral&EasternEurope9Q3 2022 EUROPEAN PE BREAKDOWNSPOTLIGHT:UK&IRELANDSpotlight:UK&Ireland51.462.484.9127.589.7150.6140.0133.6129.8228.5129.27728681,0001,1231,1171,2621,4181,3571,3381,9621,2014

51、2000212022*Deal value(B)Deal countUK&Ireland PE deal activitySource:PitchBook|Geography:UK&Ireland*As of September 30,2022This spotlight is abridged from our 2022 UK&Ireland Private Capital Breakdown.Please see the full report for the full analysis.The UK&Irelandparticularly th

52、e UKhas been one of the largest European PE deal value generators of the past decade.The development of large-scale portfolio companies and PE sponsors with considerable assets under management(AUM)is a major part of the financial industry in the UK,alongside traditional investment banking,managemen

53、t consulting,and accounting services.As witnessed globally,outsized deals have skewed UK&Ireland deal activity.Despite a softening in activity through Q3 2022,substantial deals continued to close.For example,Permiras take-private of London-based cloud cybersecurity provider Mimecast was one of the l

54、argest deals in the first half of the year.Mimecast was delisted after debuting on the tech-heavy Nasdaq in 2015.Tech stocks have enjoyed a bull run for several years,characterised by an insatiable appetite from investors,strong growth metrics,and an increasing reliance on technology in everyday lif

55、e.Furthermore,UK-and Europe-based tech companies have often listed on established US exchanges to increase their exposure to new markets and leverage wider investor bases.2022 has seen numerous public tech companies struggle below their high multiples of the past two years.Take-privates could become

56、 increasingly popular in upcoming quarters as PE firms with high levels of dry powder target undervalued high-growth companies in the current market.Lofty valuations tied to soaring revenue multiples have fallen,as investors have turned to value instead of growth in recent months.US-based tech compa

57、nies are scattered among the largest company market capitalisations in the world,and UK-based counterparts have constantly looked to bridge the gap.Instead of risking an IPO to promote growth or struggling with a lowly share price,companies may look to PE firms for take-privates to focus on long-ter

58、m growth efforts and avoid the noise,financial reporting,and scrutiny facing public companies.10Q3 2022 EUROPEAN PE BREAKDOWNSPOTLIGHT:UK&IRELANDIn H1 2022,UK&Ireland PE exit value kept pace with 2021s record-breaking total.Exit markets often reflect near-term challenges facing companies and economi

59、es first;however,PE exits remained surprisingly resilient in through Q3 2022.Major exits tend to skew exit value,and a selection of high-profile exits closed through Q3 2022.Further,as public listings have declined in popularity,buyouts and corporate acquisitions have continued to take place at a ra

60、pid clip despite market uncertainty.Exit agreements in place prior to financial market volatility in H1 2022,as well as elevated dry powder levels,drove exit activity in the first half of the year.20000212022*%of total PE deal value%of total PE deal volume32.5%27.7%2

61、8.8%27.9%0%5%10%15%20%25%30%35%40%UK&Ireland PE deal activity as a share of all Europe PE deal activitySource:PitchBook|Geography:UK&Ireland*As of September 30,2022The pace of PE fundraising in the UK&Ireland was slightly down on figures registered in the past three years.During the past decade,fund

62、raising totals have oscillated,indicative of figures that are dictated by mega-funds closing in the region.Naturally,factors including tentative financial markets,rising interest rates,political instability,and inflationary pressure are likely to adversely impact multibillion-euro fundraising effort

63、s.In contrast,established PE fund managers with strong track records and vast networks,combined with deep-pocketed limited partners(LPs)seeking returns,can help commitments flow into funds based in the region.11Q3 2022 EUROPEAN PE BREAKDOWNEXITSExits127.6167.2234.6268.4219.6266.6257.2233.3204.8429.7

64、 221.0 8159911,0971,2911,2221,3801,3891,2621,0691,5441,20002020212022*Deal value(B)Estimated deal value(B)Deal countEstimated deal countPE exit activitySource:PitchBook|Geography:Europe*As of September 30,2022European PE exit value reached 221.0 billion through Q3 20

65、22,sustaining declines from elevated figures logged in 2021.If the current pace continues,exit value is expected to land just shy of 300.0 billion at the years conclusion,down from 429.7 billion in 2021.Despite the challenging exit environment,volatile public equity markets,and gloomy macroeconomic

66、outlooks,exit value could register the second-largest figure from the past decade at the end of 2022.As bear markets have proliferated across Europe,exits have become less appealing for investors and management teams.Lower valuation multiples tied to major public stocks have naturally raised questio

67、ns about the accuracy of lofty valuations linked to privately backed companies.Furthermore,an assortment of factors including geopolitical tension,weak economic growth,spiralling inflation,and interest rate hikes have impacted exit appetite.Exit value has steadily declined QoQ as we have progressed

68、through 2022,with 48.0 billion logged in Q3.The decline in exit activity has coincided with worsening wider financial market sentiment,as fears of market-correcting recessions have surfaced.Despite the looming economic downturn,exit activity has been in line with pre-2021 figures.One of the largest

69、exits in Q3 2022 was the 2.7 billion buyout of Reden Solar by Macquarie Asset Management,British Columbia Investment Management,and MEAG from InfraVia Capital Partners and Eurazeo.0%10%20%30%40%50%60%70%80%90%100%20000212022*Materials&resourcesITHealthcareFinancialse

70、rvicesEnergyConsumerproducts&servicesBusinessproducts&servicesShare of PE exit count by sectorSource:PitchBook|Geography:Europe*As of September 30,202212Q3 2022 EUROPEAN PE BREAKDOWNEXITSWe expect activity in the renewable energy space to remain strong in upcoming quarters.The energy sector has been

71、 resurgent in 2022,as international conglomerates have recorded strong profits and robust share prices.The war in Ukraine has forced the cost of energy to rise drastically across Europe given its reliance on Russian oil and gas with the costs passed directly onto consumers.Existing volatility facing

72、 finite energy markets has rejuvenated focus on renewable energy providers to negate near-term shocks,prevent future supply issues,and deliver long-term transition targets for nations.European countries and companies are working towards a greener future and recent events could increase demand for re

73、newable energy as well as accelerate efforts to prevent future energy crises.Unsurprisingly,through Q3 2022,the bulk of exit value was generated in core PE regions.The UK&Ireland and the France&Benelux regions accounted for 51.1%of exit value,producing 45.9 billion and 41.5 billion,respectively.One

74、notable exit in the UK&Ireland was the 1.4 billion acquisition of Siccar Point Energy by Ithaca Energy.Although Siccar Point Energy focuses on the production of oil and gas,while Reden Solar focuses on solar,both exits demonstrate the increased attention on and activity in the broader energy industr

75、y in 2022.Energy resources,infrastructure,and energy-focused companies will be exit targets in coming months as PE firms and corporates recalibrate portfolios.Exit value via public listings reached 11.3 billion through Q3 2022,on pace to record its lowest annual total since 2012.Public listings have

76、 dried up as a combination of choppy market conditions,weaker macroeconomic indicators,and tighter monetary policy have soured desire from PE-backed companies to risk a floatation.2022 has seen a shift away from the glut in public listing activity in 2021,which saw a record 104.4 billion exited.We b

77、elieve public listings will remain quiet for the remainder of 2022,as PE-backed companies seek alternative exit routes.In Q3 2022,no PE-backed public listings were among the 20 largest exits.Most exit activity is expected to take place via buyouts or acquisitions in the near term.However,as we have

78、witnessed recently with rapidly evolving market dynamics throughout 2021,markets can shift quickly.Mature PE-backed companies have the resources to hastily accelerate towards an exit to take advantage of market conditions and maximise returns to investors.0%10%20%30%40%50%60%70%80%90%100%20122013201

79、42000212022*SouthernEuropeUK&IrelandNordicRegionIsraelFrance&BeneluxDACHCentral&EasternEurope050030035040045020000212022*Public listingBuyoutAcquisitionShare of PE exit value by regionPE exit value(B)by typeSource:PitchBook|Geography:

80、Europe*As of September 30,2022Source:PitchBook|Geography:Europe*As of September 30,202213Q3 2022 EUROPEAN PE BREAKDOWNFUNDRAISINGFundraising20.761.750.458.772.998.581.8110.590.592.437.4622222420000212022*Capital raised(B)Fund count226PE fundrais

81、ing activitySource:PitchBook|Geography:Europe*As of September 30,2022Fundraising in Europe is on track for its lowest total in 10 years,raising a mere 37.4 billion across 66 vehicles YTD as capital is becoming more expensive in a hawkish interest rate environment.Another explanation is that distribu

82、tions have fallen due to less favourable exit conditions and therefore fundraising will be weaker as less proceeds are available to be reinvested.LPs are adopting a wait-and-see approach before committing new capital to new,less-established GPs given the nervousness of private markets deriving from

83、the fall in public markets.Only one out of the 15 largest funds this year is a first-timer:Nextalia,in Italy.In Q3,we saw experienced PE fund houses create new funds such as Cinven,Synova,and even EQT.Seemingly,they felt less squeezed due to their previous experience in downturns and thus were overs

84、ubscribed:EQT closed at 2.4 billion,surpassing their target of 2 billion,and Synova Capitals fifth fund closed at the hard cap of 1 billion,surpassing their target of 859.8 million.050030020000212022*2022Total2020152014Cumulative over

85、hangOverhangby vintagePrivate equity dry powder(B)by vintage year Source:PitchBook|Geography:Europe*As of September 30,202214Q3 2022 EUROPEAN PE BREAKDOWNFUNDRAISINGInvestorFundFund typeClose date(2022)Fund value(M)CountryBC PartnersBC European Capital XIBuyoutJanuary 316,900.0 UKInflexion Private E

86、quity PartnersInflexion Buyout Fund VIBuyoutMarch 12,984.5 UKEQTEQT Growth FundPE growth/expansion September 122,400.0 SwedenSumma EquitySumma Equity Fund IIIPE growth/expansion January 202,300.0 SwedenGeneration Investment ManagementGeneration IM Sustainable Solutions Fund IVPE growth/expansion May

87、 181,605.7 UKCinvenCinven Strategic Financials FundBuyoutJuly 111,500.0 UKAstorg(Paris)Astorg MidcapBuyoutFebruary 221,263.0 FranceAstorg(Paris)Astorg IQ-EQ FundBuyoutJanuary 131,235.0 FranceSynova CapitalSynova Capital VBuyoutJuly 261,024.8 UKPollen Street CapitalPSC IVBuyoutFebruary 171,174.0 UKUf

88、enau Capital PartnersUfenau VIIBuyoutMarch 311,000.0 SwitzerlandNextaliaNextalia Private Equity FundBuyoutJune 30800.0 ItalyErgon Capital PartnersErgon Capital Partners VBuyoutMay 12800.0 LuxembourgPolaris Private EquityPolaris Private Equity VBuyoutJanuary 1690.0 DenmarkGRO CapitalGRO Fund IIIBuyou

89、tMarch 16600.0 Denmark15 Largest PE funds closed in 2022Source:PitchBook|Geography:Europe*As of September 30,2022Q3 saw fundraising become more sector-specific as LPs are becoming pickier,evidenced by some of the largest funds closed.Cinvens latest fund raised 1.5 billion and will specialise in fina

90、ncial services like insurance,reinsurance,and asset and wealth management services where it plans to target investments between 150 million and 400 million on average,according to Caspar Berendsen,a partner at Cinven who leads the financial services team.7 Similarly,three funds raised a combined 414

91、 million within energy in Q3 as the sector has proven resilient in 2022 thanks to,in part,a commodities boom deriving from the war in Ukraine,but also companies being able to pass inflationary,higher costs onto customers.Fundraising at the 1 billion to 5 billion level stands out this year,YTD,accoun

92、ting for almost half of all the fundraising in 2022 in terms of European PE capital raised.This is directly tied to the nervousness LPs are exhibiting in this downturn 7:“Cinven Raises$1.5 Billion for Dedicated Financial-Services Fund,”Bloomberg,Jan-Henrik Foerster,July 11,2022.8:Ibid.economic cycle

93、 as they are unwilling to commit too much capital and create mega-funds which will struggle to deploy capital.At the same time,they are unwilling to swim in new waters with unexperienced first-time managers which are often in the lower brackets of fundraising.Coming back to Cinven,it is a good examp

94、le as it raised 1.5 billion,but it reportedly took longer than expected according to sources familiar with the matter.8PE growth/expansion funds have been very popular in 2022,representing 29%of capital raised in European PE funds.This fund strategy is at the cross section between PE and venture cap

95、ital(VC)as it targets growth companies that are well-established but still young,fast-growing,and seeking minority stakes.These tend to have higher returns than more mature PE targets,and are less risky than the less-established companies targeted by VCs.Investors have turned to PE growth/expansion

96、funds as 15Q3 2022 EUROPEAN PE BREAKDOWNFUNDRAISING0%10%20%30%40%50%60%70%80%90%100%20000212022*5B+1B-5B500M-1B250M-500M100M-250MUnder 100M10%3%4%4%3%2%2%2%3%2%1%12%11%9%11%8%9%10%6%8%7%8%14%9%15%12%16%13%8%9%9%9%12%19%7%14%13%16%13%10%13%12%23%13%14%35%46%49%29%28%2

97、9%34%38%26%47%35%33%12%11%28%35%41%35%30%33%18%Share of PE capital raised by size bucketSource:PitchBook|Geography:Europe*As of September 30,2022dry powder has amassed and LPs are able to write larger cheques than in VC,as the targeted companies are larger and more established.This years third large

98、st fundraising saw Sweden-based EQT raise 2.4 billion for their EQT Growth Fund making it the largest fund in Europe running a growth/expansion strategy.The strategy seeks to invest 50 million to 200 million per company within four 0%10%20%30%40%50%60%70%80%90%100%2000182019202

99、020212022*Restructuring/turnaroundPE growth/expansionOtherBuyout250.0303.0192.5262.0218.4290.0050030035020000212022*Buyout fundsPE growth/expansion fundsAll PE fundsShare of PE capital raised by typeMedian PE capital raised by typeSource:PitchBook|Geograph

100、y:Europe*As of September 30,2022Source:PitchBook|Geography:Europe*As of September 30,2022tech sub-sectors:enterprise,con/prosumer,health,and climate.Our quantitative team has calculated a 15.8%internal rate of return(IRR)over the past 15 years for the growth/expansionary strategy as stated in our Gl

101、obal PitchBook Benchmarks report published on October 14.We expect the strategy to continue growing during the impending downturn.Additional researchCOPYRIGHT 2022 by PitchBook Data,Inc.All rights reserved.No part of this publication may be reproduced in any form or by any meansgraphic,electronic,or

102、 mechanical,including photocopying,recording,taping,and information storage and retrieval systemswithout the express written permission of PitchBook Data,Inc.Contents are based on information from sources believed to be reliable,but accuracy and completeness cannot be guaranteed.Nothing herein shoul

103、d be construed as any past,current or future recommendation to buy or sell any security or an offer to sell,or a solicitation of an offer to buy any security.This material does not purport to contain all of the information that a prospective investor may wish to consider and is not to be relied upon

104、 as such or used in substitution for the exercise of independent judgment.Private equity,private capital,and M&AQ2 2022 European PE BreakdownDownload the report here.Q3 2022 US PE BreakdownDownload the report here.2022 UK&Ireland Private Capital BreakdownDownload the report here.Q2 2022 Global M&A ReportDownload the report here.More research available at