Scottish private equity investment remains ‘steady’ during Q1
Middle-market private equity investment volumes in Scotland stayed steady in the first quarter of this year – despite ongoing Brexit uncertainty, as such firms retain an appetite for strong businesses, according to KPMG.
New analysis by the Big Four accountant of UKtr an sactions involving private equity investors indicates that deal volume in Scotland increased marginally from eight deals in the first quarter of 2018 to nine 12 months later, at a value of £970 million. The professional services firm is defining midmarket private equity deals as having an enterprise value between £10m and £300m.
James Kergon, head of deal advisory for K PM Gin S cotland, said :“The market in Scotland has remained resilient within the wider UK context, where total dealvolumes decreased by one-third, from 266 in the first quarter of 2018 to 175 – not surprising as the original Brexit deadline loomed large at the end of the quarter.”
But he added that confidence did not disappear in the middle market .“Private equity firms are perhaps being much more considered in how and where they invest, but they are still willing to pay big multiples for high value and resilient businesses.”
KPMG added that UK private equity firms are putting greater emphasis on their existing portfolio companies, and are showing an increasing willingness to make minority stake investments.