News - October, 2014

Lull in technology exits contrasts buoyant overall exit market in German PE

October 7, 2014 – “Exit activity in the technology market has been subdued over the past few years, owing to a decline in European trade sales,” according to Cipio Partners managing partner Roland Dennert, speaking at the DACH Private Equity Forum held in Munich today.

Cipio Partners was joined by representatives from Equistone Partners, Gain Capital, Silverfleet Capital and Avedon Capital on a panel focusing on the challenges associated with Exits.

“Within the technology sector, secondary direct transactions can address the liquidity needs of investors in late stage businesses that need more time to grow,” Dennert noted. “Even in some businesses on the IPO track, such as Zalando, certain shareholders have gone down the path of secondary directs.” Such transactions amount to about €1 billion annually in Europe estimated Dennert.

The panel found that the lull in exit activity with technology assets contrasts with the buoyant overall exit environment for German private equity-backed companies over the past three to four years. Last year was a record year with cumulated exit value amounting to €16.8 billon, according to Mergermarket statistics. “2014 may be slightly below this level, but it’s still shaping up to be a strong year for German exits in general,” Dennert concluded.

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