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insight

The best is yet to come for PE's?

Steffi De Roy
September 29, 2023

In the Benelux, private equity investments in the second quarter were 10% less than during the first quarter of 2023.

We are almost ten months into the year and see mixed messages in PE activity. Conversely, Q2 invested amounts have doubled within Europe; on the other, Benelux is lagging in deals and invested amounts. Does this mean we can expect a rush of Benelux deals towards year end?

Nearly doubling of money invested

In Europe, the invested amount in unlisted companies almost doubled in Q2 compared to Q1, resp. €72.2 billion vs. €36.5 billion (+98%). In addition, an increase is identified compared to Q2 2022 with a +50% increase. Hence, it seems the hesitant start for investments in unlisted companies this year was temporary. Reasons for these trends are the reshoring – or returning production back home – and ESG considerations, which are only starting-.

Benelux is lagging

While invested amounts have doubled in Europe, Benelux is lagging. Private equity investments in the second quarter were 10% less compared to the first quarter of 2023.

It should be noted that last year's figures included a substantial transaction in Luxembourg, which is seen as an outlier.

Also, the number of transactions in the first half of 2023 (552 deals) is only one-third of the 2022 deal volume (+1,500 deals) and only ~73% of the Q2 2022 deal volume (754 deals).

Interesting shift to “Food & Beverage”

The more relevant industry for PE investments in the Benelux during the first half year of 2023 is undoubtedly “Food & Beverage,” with a fourfold higher deal volume compared to the second largest industry, “Professional services”.

Is Food & Beverage back on the road, or is it a one-off? Do you expect a rush on deals by year-end? Happy to read your thoughts.

 

Sources: Pitchbook and De Tijd

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