Mid-market private equity deals increase

THE total value and volume of mid-market private equity deals in the North West increased last year, according to new research.

The UK Mid-Market Barometer published by private equity house LDC and trade magazine Unquote said mid-market deals, valued at £5m to £150m, grew from 19 to 23, up 21%.

The total value of transactions also increased by 35% to £784m, compared to £579m in 2011. In 2009 only eight transactions completed with a combined value £168m.

There were 19 buyouts in the £5m-£50m range compared to 16 the year before. This included the LDC-backed management buyout (MBO) of Manchester-based Airline Services Components and its investment in internet service provider Metronet (UK), also based in Manchester. The total value of deals in this market increased by 38% to £399m over the same period.

Nationally, 203 mid-market buyouts were recorded in 2012, up from 190 in 2011. Deal values also increased, rising from £5.8bn to £8.8bn, across the same period.

Carl Wormald, head of LDC in the North West, said: “Deal volumes and values have consistently improved each year since 2009, demonstrating the resilience and pro-active nature of the dealmaking community in the North West, as well as the high quality management teams and businesses in the region.

“The positive figures across the lower and upper ranges of the mid-market illustrate that private equity remains a core source of funding for North West businesses and in creating value, with investors looking to support those with buy and build potential and international expansion capabilities, in particular.”