Private equity deal flow is bouncing back, with the value of deals so far this year up 88 percent from last year, lifted by a $9.4 billion (5.7 billion pounds) deal by Blackstone Group LP to buy U.S. shopping malls from Australia’s Centro Properties.
Figures from Thomson Reuters show that private equity-backed mergers and acquisitions have totaled $36.3 billion for the year to date.
Private equity executives expect that to continue. At a conference in Berlin this week, David Bonderman, the co-founder of TPG Capital said a $10 billion to $15 billion leveraged buyout deal would be possible right now as financing is again available on attractive terms.
Private equity deal sizes have been increasing since the credit crisis cut off access to cheap debt. But deal size, which has mostly rebounded to the $3 billion to $5 billion, remains far lower than the double-digit billion figures hit in 2006 and 2007.
Bonderman said while there isn’t as much volume as in those “halcyon days,” financing is in fact available on “attractive terms.”
The lion’s share of deal flow came from the real estate, health care and industrials sectors, Thomson Reuters data show.
UBS AG and Barclays Plc.’s Barclays Capital top the advisory rankings for private equity-backed M&A for the year to date, according to the data.