European PE activity softened in Q3, with buyout and growth deals trending down alongside early-stage, which had already begun to slow in the second quarter amid a wider risk-off pivot in capital markets.
Key findings include:
- Overall European PE: PE deal volume in Europe continued its descent, coming in at 499 deals, down 35% on Q2 2022 and by as much as 52% on the same quarter last year. Deal value slumped even more acutely, to EUR 55.8bn - the lowest level since Q3 2020 and a 47% decline on the previous quarter.
- Buyouts: Total buyout value came to EUR 44.6bn in Q3, again the lowest ebb since the corresponding quarter in 2020 and a 48% quarter-on-quarter decline. Volume fell by 27% to 211 buyouts, a low not seen since Q2 2020 at the start of the pandemic.
- Growth capital: Growth capital volume was down 34% in Q3 to 266 deals, less than half of the total in the first quarter of the year. Growth deal value totalled EUR 10.7bn in the third quarter, a 43% shortfall on Q2.
- Early-stage: Early-stage deals fell by 71% on the previous quarter to just 22 funding rounds, seeing the biggest decline of any private equity strategy. VC deal value across Europe fell by 58% to EUR 544m, its lowest level in four years as risk-asset valuations have come under immense pressure.
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