Private equity had a strong finish to the decade. Global PE-backed buyout volume reached nearly $400 billion by year end, which represented a 20% decline relative to 2018 but was still quite robust by historical standards, fueled by a number of megadeals, significant dry powder and record-low interest rates.
We review below some of the key themes that drove PE deal activity in 2019 and our expectations for 2020.
Megadeals. There were a number of $10 billion-plus PE deals in 2019, including Blackstone’s $18.7 billion purchase of the U.S. warehouse portfolio of Singapore-based GLP (the largest private real estate deal in history), EQT’s $10.1 billion purchase of Nestlé’s skincare unit, and the $14.3 billion sale of communications infrastructure services provider Zayo Group to Digital Colony Partners and EQT. In addition, in November, it was reported that KKR had approached drugstore giant Walgreens Boots Alliance about a potential $70 billion take-private transaction—a deal that, if successful, would be the largest LBO in history.
