NEW YORK and LONDON, Aug. 8, 2024 - Mergermarket and Debtwire, the leading M&A and fixed income news, data, and analytics services from ION Analytics, have announced a notable resurgence in private equity (PE) buyouts in the first half of 2024, with direct lending emerging as a crucial element of the current market topography. The data is derived from the 1H24 Buyout Highlights reports for Europe and the US.
The reports offer a comprehensive overview of the US and Europe buyout markets, using best-in-class leveraged finance and M&A data across ION Analytics. They identify key market challenges and trends in 1H24, providing insights to anticipate industry shifts and opportunities.
The US Buyouts Highlights report reveals:
Buyouts surged to USD 146 billion from USD 108 billion in 1H23, led by Truist Insurance's USD 12.3 billion acquisition by Stone Point Capital, Clayton Dubilier & Rice, and Mubadala Investment.
Leveraged loan issuance climbed 75% to USD 41 billion in 1H24.
High Yield bond buyouts stalled in 2Q, totaling USD 4.3 billion, less than half of 1H23's volume.
Direct lenders doubled their activity over the same period, funding USD 20.6 billion in buyout financing in 1H24.
Technology firms led M&A activity, with deals amounting to USD 64 billion.
According to the Europe Buyouts Highlights report:
Buyouts totaled EUR 95 billion, up 168%, led by Apollo Global Management's EUR 10.1 billion acquisition of a 49% stake in the joint venture entity related to Fab 34.
Issuance of leveraged loans recovered in 2Q24, rising 62% from 1Q24 to EUR 8.13 billion and totaling EUR 13.1 billion for 1H24.
High Yield bond activity for LBOs resumed in 2Q24 with EUR 1.23 billion, while half-year issuance was the lowest since 1H17.
The technology sector topped the table with buyouts totaling EUR 36.5 billion.
Lucinda Guthrie, Head of Mergermarket, says, "PE firms bounced back into buyouts in 1H24. With record levels of dry powder, PEs were under pressure to deploy. They were willing to take on more complex transactions, from larger ticket sizes to multi-billion dollar listed company acquisitions."
"The significant jump in buyout activity in the US and the huge resurgence in Europe mark a turning point since rising interest rates reset the dealmaking conditions two years ago. The latest deal flow shows how buyouts are evolving in this landscape, with direct lending acting as a significant feature of the market dynamics," she adds.
John Bringardner, Head of Debtwire, says, "Direct lending became a critical source of buyout financing in 1H24, fueling deals that might not have gotten done without it. Corporate borrowers wanted guaranteed financing in an uncertain market without the volatility of syndicated loan markets. Broadly syndicated loans have been bouncing back, however, and the pendulum looks set to swing away from direct lenders, which are entering a period of contraction and consolidation."
To request the full 1H24 Buyouts Highlights reports, click here for Europe and click here for the US.
About ION
ION provides mission-critical trading and workflow automation software, high-value analytics and insights, and strategic consulting to financial institutions, central banks, governments, and corporate organizations. Our solutions and services simplify complex processes, boost efficiency, and enable better decision-making. We build long-term partnerships with our clients, helping transform their businesses for sustained success through continuous innovation. For more information, visit https://iongroup.com/
About ION Analytics
ION Analytics delivers personalized, targeted data and market intelligence to banks, investors, and corporates, helping clients find opportunities and drive better decisions in markets ranging from equities and fixed income to infrastructure and private equity. The ION Analytics platform brings together six unique, powerful services that span global markets making ION Analytics the only choice for capital markets professionals. For more information, visit https://iongroup.com/analytics/
About Mergermarket
Mergermarket is the premier provider of global proprietary M&A intelligence, data, and predictive analytics. With access to coverage of 1.4 million companies, almost 3,000 sponsors, and powered by 300 journalists and analysts globally, we bring transformative M&A insight and a competitive edge to capital markets professionals, shaping the future of M&A. For more information, visit https://info.mergermarket.com/
About Debtwire
Debtwire is the first true end-to-end platform for the leveraged finance market, powered by proprietary investigative journalism, 30 years of fixed income data and predictive analytics. With in-depth coverage of more than 47,000 global issuers of high-yield bonds, leveraged loans and private credit, Debtwire helps investors and advisors capitalize on market-moving credit events, identify risks early and monitor performance across the entire leveraged issuer lifecycle, from primary issuance to restructuring. For more information, visit https://info.debtwire.com/
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SOURCE ION
