EMEA Private Equity Market Snapshot Issue 17

This issue leads with a review of the EMEA region for the first quarter of 2018. The region struggled to kickstart the year as investments from global general partners (GPs) waned compared to the same period in 2017, with capital deployment plummeting by 56% from €36.3bn to just €15.6bn.

Next we journey to Central and Eastern Europe (CEE) and take a deeper dive into what appears to be an attractive investment market. As a relatively stable region with economic growth of 4.4%, its large domestic consumer base, low-cost and skilled labor force, and proximity to western European markets makes the region considerably appealing to investors.

Our sector focus explores the media & telecommunication landscape, one which has had capricious interest from global GPs over the last 10 years. The sector has failed to attract constant levels of capital and as recently as 2017, capital deployed declined by 38%, dropping to €18.6bn. On a regional basis, however, Asia-Pacific overshadowed both North America and EMEA with China being the most attractive destination for global buyers over the last few years.

In our feature article we look to the leveraged loan and bond markets. The former has been historically favored by sponsors, with data confirming the bias. European sponsors obtained 82.8% of their financing needs in the loan market in 2016, the highest percentage since the financial crisis in 2008. However, in the wake of the crisis, is the bond market now on the rise?

Click here to read the full EMEA Private Equity Market Snapshot: Issue 17

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