Its report, Private Equity 2012, found that backed buyouts generated 5.9% of global M&A activity in the first six months of 2012, down from 6.9% in 2011. It says that recovery in the second half of the year will largely be dependent on stabilisation of the sovereign debt crisis in Europe and improved global growth prospects.
UK private equity firms posted a decline in investments in line with the global trend; however their buyouts increased to £8bn in the first half of 2012, a 38% increase on the second half of 2011.
The report also highlighted a general deleveraging that has occurred since the start of the economic slowdown. Global leveraged finance totalled $692bn in the first half of 2012, down 23% on the same period in 2011. Three-quarters of this was raised through leveraged loans, and the remainder through high-yield bonds.
From an investment trust angle, the AIC Private Equity Sector has fallen 5% in performance terms in the past 12 months, according to FE Analytics. However, the average trust was up 49% over three years.