PRINT THIS PAGE Exit value falls in 2007, CMBOR03/04/2008. Source: AltAssets. 
Exit value fell to £23.8bn in 2007, significantly down from the record £26.9bn achieved in 2006, according to the Centre for Management Buy-out Research, a private equity market information provider founded by Barclays Private Equity and Deloitte. Conversely, exit volumes in 2007 increased, reaching a record 400 compared to 335 in 2006. The average exit value in 2007 was £59.3m compared to £80.2m the previous year.
Secondary buy-outs reached a record £14.4bn from 124 transactions, nearly double the £8bn recorded in 2006. Secondary buy-outs now account for over half of all exits by value.
Last year was a strong year for trade sales in terms of volume, increasing to 156 from 143 in 2006, but with total value almost half the 2006 figure.
The number of IPOs fell in 2007 to their lowest level since 2002. There were just 14 flotations last year, compared to 21 in 2006. This was just slightly up on the 13 flotations achieved in 2002. The largest buy-out IPO of the year was Safestore, which floated in March with a total value of £449m.
Mark Pacitti, corporate finance partner, Deloitte, said, '2007 saw 25 deals exit for more than £250m each. However, after 16 exits in the first half, we recorded just nine in the second half as the credit crunch started to bite. It is also notable that 60 per cent of these larger exits were secondary deals. The credit crunch not only hampers new investing activity but also makes it harder for private equity investors to realise the value they have created.'
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