Megadeal trend will continue
• A healthy pipeline suggests there will be an increase in the number of €1b-plus deals in the coming 12 months.
IPOs will continue to offer viable exit route
• A number of portfolio companies are already planning IPOs for 2014, as the backlog of exits will continue to clear.
Fund-raising will drive more deals
• PE houses will be able to raise more funds as investors seek higher yields and exits continue, following a successful fund-raising year in 2013.
Non-European investors continue buying spree
• US and Asian investors will continue to be attracted to European assets as economic recovery begins to bed in. That said, the speed of this recovery may differ between the individual economies.
Will European corporates rejoin the market?
• The dearth of corporate buyers in the exit market is arguably putting a brake on full recovery, as investors need to be able to explore all avenues as they seek to clear their portfolio overhang. While the return of the IPO market is very welcome, corporates need to play their part as well in 2014.
Courtesy of EY