Buyout Firms: Back From the Beach Already

This week has seen a surge in firms selling their shares in European companies.

Private equity firms have cut short their summer vacations.

This week has seen a splurge in stock sales by leveraged-buyout firms trying to cut stakes in European companies they have previously taken public, but not fully exited.

It's been the busiest week for such offerings since the Brexit vote, and the second-busiest all year, as this chart shows.

Back to Work, People

After a Brexit lull, this week has seen a comeback in share sales by private equity firms in Europe

Source: Bloomberg

While there is always some pickup in activity in September once deal-makers have got back from the beach, it usually doesn't happen until the first full week following the U.K.'s summer public holiday -- not the traditionally sleepy four days immediately afterwards.

20160902_SHARES

There were seven offerings this week, raising $1.83 billion. That's more than the five deals that raised a paltry $587 million in the period between the June 23 referendum and the Aug. 29 holiday. Only the last week of April was busier.

As Gadfly pointed out in June, uncertainty before the Brexit vote had put a dampener on sales by private equity firms. That left the threat of stampede for the exits after the vote. That rush was, of course, delayed by the surprise vote in favor of leaving the European Union.

But as stock markets have rebounded and volatility has abated, the logjam has now broken. If markets hold firm, expect a busy September.

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

    To contact the authors of this story:
    Chris Hughes in London at chughes89@bloomberg.net
    Elaine He in London at ehe36@bloomberg.net

    To contact the editor responsible for this story:
    Edward Evans at eevans3@bloomberg.net

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