Preliminary end of year figures announced today by CMBOR, the pre-eminent provider of analysis on the UK buy-out market founded by Barclays Private Equity and Deloitte, has shown the buy-out market has enjoyed huge success in 2005 and is expected to reach a five year high of £23 billion at the year end,12% ahead of 2004.

Tom Lamb, Co-Head of Barclays Private Equity, commented: “2005 is set to be the best year for the buy-out market since the heady days of 2000. However, the shape of the market has changed dramatically over that period. The best hunting ground for private equity firms now, is either buying from competitors or from the stock market. Secondary buy-outs and take privates now account for over 70 per cent of the market value. By way of contrast, the value of traditional primary buy-out’s from UK Corporates has declined dramatically over the last five years. They used to account for over 50 per cent of the market but this has fallen away to 13 per cent. Mark Pacitti, Corporate Finance Partner at Deloitte, commented:

“The key trend this year has been the growth of themega-deal(>£250m) with a record 21 deals worth nearly £13 billion, more than 60% of the market and up 28% on last year. Conversely, the mid-market (£10m-£250m) has actually fallen by 23 per cent this year from £9.6 billion to £7.4 billion. With the incredible firepower available to private equity houses, we can expect to see average deal sizes continuing to grow in 2006.”

Other statistics:

• Total market value for year to date is £20.9 billion, a five year high for private equity.
• Further mega deals announced (eg Somerfield at £1082 million and Peacock at £404 million) are expected to push total over £23 billion by year end.
• Healthcare has been the big success story of 2005, trebling 2004’s figures to produce £4.5 billion.
• Pbit multiples have increased for larger deals over the last 3 years.
• Exit market is very healthy with a new record exit value set in 2005 with £20.1 billion recorded.
• Fund raising has also reached a new high with £18.5 billion raised in 2005.
  

- Ends -

Notes to Editors:
The Centre for Management Buy-out Research (CMBOR) was founded by Barclays Private Equity and Deloitte at Nottingham University Business School in 1986. CMBOR is world-renowned as the long-standing leader in providing robust analysis of the buy-out market.

To view the full report with graphs please download the PDF attachement.

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP.

Deloitte & Touche LLP is a member firm of Deloitte Touche Tohmatsu, a leading professional services organisation, delivering world class audit, tax, consulting and corporate finance services, with around 120,000 people in over 140 countries. Deloitte Touche Tohmatsu is a Swiss Verein, and each of its national practices is a separate and independent legal entity.

Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.

The information contained in this press release is correct at the time of going to press.