LONDON May 15 Private equity returns in Europe
rose by 3.8 percent points to 11.8 percent overall in 2013,
Thomson Reuters data showed on Thursday, as favourable debt
markets, successful fundraisings and a growing appetite for
deals boosted activity.
The figures show private equity investments have brought
better returns than the FTSE 100 and the STOXX Europe 600
indexes of blue-chip stocks over the past 10 and 20 years,
though public markets offer better returns over one, three and
Pure buyout funds, as opposed to private equity classes such
as infrastructure and real-estate funds, saw their returns jump
even more, up 4.2 percentage points in 2013 to 13 percent, the
Thomson Reuters data showed.
The figures are due in part to an upturn in multi-billion
dollar buyouts, which have been increasing despite high
valuations and intense competition, as private equity funds have
raised billions from investors and need to deploy those funds.
Bain Capital for instance last month closed a $7.3 billion
fundraising for its next flagship fund and is seeking to raise
about 3 billion euros ($4.1 billion) to invest in Europe.
London-based Permira is also in the process of
raising about 5 billion euros, while Cinven raised an
equivalent amount last year.
Recent sizeable deals include the acquisition of payment
provider Nets for $3.13 billion by a consortium formed by Advent
International, ATP and Bain Capital.
The uptick in buyout activity is also moving to Europe's
periphery, where relatively cheap investments in fast-growing
and export-oriented companies based in Spain and Italy are back
on the agenda, sponsors and leveraged bankers said.
U.S. investment firm KKR acquired Spain-based
Cementos Balboa from Grupo Alfonso Gallardo earlier this month
and is expected to refinance 500 million euros of debt held by
the company, Madrid-based bankers said.
Venture capital firms have seen higher returns for
investments of one and three-year time horizons than those with
five-, 10- and 20-year horizons, the data also showed.
($1 = 0.7294 Euros)
(Editing by David Holmes)