News Digest: Leveraged buyouts hit all-time high
January 10, 2022
The volume of leveraged buyouts struck in the U.S. so far this year has hit a record high of $944.4bn, 2.5 times the corresponding figure for the same period last year, and more than double the previous peak attained in 2007, figures released by Dealogic show.
During the first 11 months of 2021, the U.S. saw private equity firms announce five $10bn-plus deals, below the high-water mark of nine in 2006, the data provider said.
The record-breaking pace of LBOs reaffirms the growing trend of many listed companies increasingly willing to embrace private ownership, and move away from the steady scrutiny of public markets. It also highlights the massive “gun powder” buyout funds have amassed in recent years to deploy, with several of them not shying away from outbidding strategic suitors for assets they deem undervalued.