Confidence in the UK private equity market remains robust despite a slowdown in the overall number of exits, according to the latest figures from drxDATA.
The total number of private equity exits in the UK fell by 8% to 69 in the third quarter of 2017 compared to 75 in the same period last year.
However the number of IPOs increased from 1 in Q3 2016 to 3 in Q3 2017, and the number of secondary buyouts was almost unchanged with 33 completed in the third quarter of 2017 compared to 34 in the same period last year.
Commenting on the figures, Graham Roadnight, Drax Executive’s managing director, said: “Our drxDATA figures are good news for the UK’s private equity industry. They show that exit activity in the market has held up well in the third quarter of 2017 despite a challenging economic background. While overall exit figures have declined, the number of secondary deals has held steady and there has been increase in the number of IPOs which is extremely positive. These figures show that there is still considerable confidence amongst investors in the private equity market and, most importantly, that there is still strong investment potential within the UK.”
According to drxDATA, a total of 251 PE exits took place in the first nine months of 2017 compared to 280 for the first nine months of 2016. So far this year 9 IPOs have taken place, the same number that took place in the first nine months of last year, and there have been 136 secondary PE exits compared to 126 for the same period of 2016.