North leads the way for Q1 private equity exits
DEALS involving five northern companies, worth €2.6bn (£2.1bn) were among the top 20 largest private equity exits in Western Europe in the first three months of 2014, according to research.
According to data from the EY and Equistone Partners Europe-sponsored Centre for Management Buyout Research (CMBOR), the northern deals – three in the North West – accounted for a healthy chunk of the €16.1bn total across Western Europe.
The IPO of Handforth-based Pets At Home was the third largest exit in the area and the largest in the UK as private equity backer KKR sold down most of its stake in the retailer.
The sale of Leeds-based Callcredit Information Group was 10th in the table. Gresham Private Equity’s successful exit of Skelmersdale-based Hotter Shoes was in 16th place while Zenith (Leeds – 17th) and Manx Telecom (Isle of Man – 20th) were the other North of England exits in the top 20.
The North was the best represented UK region in the first quart too, seeing off London, which saw three exits, the South East and the Midlands each with two, and the East of England one.
Tim Morris, corporate finance partner at EY in the North West, said: “The number and quality of private equity exits in the North in Q1 reflects the strength of the region’s mid-market businesses in delivering value and how well the Northern buyout market has effectively held up during the downturn to produce these realisations.
“Alongside improving economic conditions providing buyers with better visibility of future performance, the continuing UK IPO market revival – in which North of England businesses have played an important role – has been a core factor in helping to deliver these exits and reinforce the North’s status as one of the best destinations for private equity investment in Europe.
