Kirkland, Clifford Chance and Latham dominate PE buyout rankings
Kirkland & Ellis, Clifford Chance (CC) and Latham & Watkins have dominated the global league tables for private equity buyout advisers in the first quarter of 2014, as new data shows Q1 2014 was a record period for private equity exits worldwide.
April 10, 2014 at 07:23 AM
3 minute read
Kirkland & Ellis, Clifford Chance (CC) and Latham & Watkins have dominated the global league tables for private equity buyout advisers in the first quarter of 2014, as new data shows Q1 2014 was a record period for private equity exits worldwide.
Kirkland was the most active adviser by both value and volume over the three month period, which was the busiest start to a year for exits by private equity houses since 2001, according to Mergermarket trend data, with exits totalling $111.9bn (£66.8bn). The average deal size of exits reached the highest value on record for any start to the year at $598.1m (£357.2m) – 61% higher than the previous Q1 peak in 2008.
While the value of buyout house exits hit new heights in the quarter, total global activity was 9% down on Q1 2013, with all deals involving private equity houses globally standing at $83.8bn (£50bn). However, that figure was up 30% on Q4 2013.
Kirkland advised on 27 private equity deals globally, worth a combined $16.65bn (£9.9bn). Although the firm and CC, which placed second by value, saw a substantial drop in total deal value in Q1 this year compared with the first three months of 2013 – of 46% and 50% respectively – both saw an increase in the total number of buyouts they advised on. By contrast, Latham, which was the second most active firm by global deal count, saw the combined value of deals it advised on rocket 235% to bring it up from 15th place in Q1 2013 to 3rd place by value for Q1 2014.
Kirkland London private equity partner Gavin Gordon said: "The market is improving, partly driven by the increasing availability of finance. On the exits side the figures are unsurprising due to numerous high-profile initial public offerings, which are providing another route to liquidity beyond sale. The only issue is for sponsors on the acquisition side who are competing against the public market for the larger assets."
On the European front, buyout values were down almost 3% on the same period last year at US$18.5bn (£11.2bn) – only the second time on record where values were surpassed by the Asia-Pacific region. Kirkland topped the European tables by value (advising on four deals worth $5.4bn (£3.2bn)), with King & Wood Mallesons taking the top slot by volume (advising on eight deals worth $984m (£588m)).
Weil Gotshal & Manges London private equity partner Marco Compagnoni commented: "There have been signs of pent-up deal pressure over the last couple of years. There is more optimism that the availability of debt we are now seeing means that pressure has come through to the market. Judging by the pipeline of instructions we are getting, which has been on the up, I think we will be busy in the next quarter and beyond. The macroeconomic factors for growth in deal activity are all there."
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