Turkey, Indonesia Among Top Buyout Targets, Survey Shows
The survey, held among 143 buyout firms from 20 countries including the U.S., the U.K., Germany, China, Brazil, the United Arab Emirates and Turkey showed 44 percent of participants expect private-equity deals to rise in the next 12 months, compared with 61 percent in the same survey in 2011, Nazim Hikmet, vice president of Grant Thornton International Ltd’s Turkey unit, said in an e-mailed statement today.
“Private-equity firms are in search for new locations for investment,” Hikmet said. “There are new candidates for star locations and Turkey has a special place among them.”
Carlyle Group LP (CG), Blackstone Group LP (BX), BC Partners Ltd. and Cinven Ltd. have all invested in the Turkish economy, which grew 1.6 percent in the third quarter after expanding by 8.5 percent in 2011.
Out of a total of 241 Turkish deals in 2011, 46 were done by private-equity firms, Deloitte & Touche LLP said in January. Indonesia expanded its economy 6.2 percent in the third quarter of this year, according to Bloomberg data, while Peru grew 6.5 percent in the same quarter and Colombia grew 4.9 percent in the second quarter.
Family-owned companies will be the “main source of private-equity transactions,” 98 percent of the survey participants said, according to Grant Thornton’s Hikmet. About 30 percent said corporate divestments are also another area of expected transactions, he said.
Consumer goods and health care will be the most attractive industries for buyout firms, according to 38 percent of those surveyed, followed by service industries and industrial manufacturers, the survey showed.
Sixty-six percent of the participants said investment exits will increase in the next 12 months, while 54 percent said they will remain unchanged, Hikmet said.
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