Morning all, Craig McGlashan here with the Europe Wire from the London newsroom.
US GPs just can’t get enough European deals right now, with some private equity firms even bidding for deals without a physical presence in the continent. This morning’s featured deep dive looks at some of the numbers, reasons for the shift and advice for making deals in Europe.
We then look at the world of precision measurement, where Advent International is attempting to take private a businessat an equity valuation of £3.7 billion ($5.0 billion; €4.4 billion).
Big on Europe
US private equity’s European love affair is blossoming to such an extent that even GPs without a physical presence on the continent are trying to woo businesses. Europe’s stability relative to the US and improvements in areas such as deal closing times are driving the region’s attractiveness, sources told me. But Europe isn’t immune to the impact of US tariffs, while the continent’s idiosyncrasies mean those without local offices may struggle to seal deals.
Read the premium Wire to learn from Connor Kohlenberg, partner, M&A, and London office lead at West Monroe, about number of European deals his company is seeing and from Joshua Adams, partner at OpenGate Capital, about how to navigate the European market.
Check out the full article for more on why Europe is looking more attractive as an investment destination than the US, how macro forces are changing the value creation game in Europe – with thoughts from Verdane chief commercial officer Carl Nauckhoff – and why investing in Europe without a local presence might not be a long-term play. The article also has some proprietary data on US GPs’ European fundraising.
Precision deals
Switching to a sector where private equity has been making a few deals – precision measurement.
Advent International is looking to take Spectris, a high-tech precision measurement instruments provider to industries such as pharmaceuticals and semiconductors, private at an equity valuation of £3.7 billion ($5.0 billion; €4.4 billion).
Read the premium version of the Wire to find out the company's revenues and profit, its first quarter performance and other private equity activity in the sector.
That’s a wrap. Obey Martin Manayiti is in the US chair later today and I’ll write to you again from Europe tomorrow.
Cheers,
Craig
Read the full Wire commentary on PE Hub ...
