Statistics from CMBOR, the pre-eminent provider of analysis on the UK buy-out market founded by Barclays Private Equity and Deloitte, show that traditional buy-outs from corporates have made a dramatic come back, making up over 40 per cent of the market by value.

Tom Lamb, Co-Head of Barclays Private Equity, commented: “2006 has seen the welcome return of the corporate vendor representing 43 percent of total market value, the highest share for five years. This is great news for the private equity industry as there is a perception that so called primary buy-outs yield much better returns than secondaries. Many LP’s have been increasingly concerned that the huge growth in secondaries since 2001 (from 5% of the market to 37% in 2005) could eventually lead to much lower overall returns as private equity consumes itself.

“The increase in corporate buy-outs appears to have been driven by the current global M&A boom – corporate predators often spit out the unwanted parts of acquisitions in the form of buy-outs.”

Since the start of 2006 there has been a lot of confidence in the public arena, with big private equity plays being rebuffed.  Mark Pacitti, Corporate Finance Partner at Deloitte, explained: “We have seen a huge dip in public to private deals in 2006, with a value of only £1.5bn completed so far compared with £5.2bn for the same period last year, a dramatic decrease of 72%.  Public company shareholders have proved incredibly resilient to private equity advances this year and the drop in public to private completions makes up most of the £4bn fall in deal value (£13bn down to £9bn).”

Key findings:

• Following a poor start to the year, with only £3.1bn of buy-outs, Q2 2006 has now picked up to £9.1bn (compared with £11bn at this time last year);
• Leisure, business support services and manufacturing are the key industry sectors with respective values of £1.9bn, £1.3bn and £1.1bn.

- 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.

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About Deloitte

In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Known as an employer of choice for innovative human resources programmes, it is dedicated to helping its clients and people excel. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other’s omissions.  Services are provided by member firms or their subsidiaries and not by DTT.  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.

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.