BizAnalyst Network: Goldman works on half of global buyouts

Tuesday, June 05, 2007

Goldman works on half of global buyouts

Goldman works on almost half of private-equity deals

So far this year, Goldman Sachs has been involved in almost 50% of private-equity deals worldwide. The industry is on pace for a record year, with $483 billion worth of deals having been announced by the end of May. That's more than twice as much as last year at this time.

Goldman works on half of global buyouts
James Mawson
04 Jun 2007

Goldman Sachs has worked on nearly half of all private equity deals around the world so far in 2007, in what is turning out to be a record year for the industry.

The combined value of buyouts in the first five months of this year has climbed to nearly $500bn (€372bn), according to data provider Dealogic, and Goldman has worked as an adviser or finance arranger on 50 deals worth a combined $226.5bn.

Goldman pushed JP Morgan and Citi into second and third place respectively, but was boosted by the firm advising its in-house private equity arm’s $87.7bn of deals. Based on an assumed 1% to 2% advisory and debt arrangement fee, Goldman Sachs could have earned $4bn in the first five months, if all announced deals are completed.

By the end of May, private equity firms had announced $483bn of deals, more than double the total by the same stage of 2006 and nearly 30 times the value a decade before.

A third of the year’s deals were announced last month, Dealogic said, including Goldman Sachs and TPG Capital’s agreed $25bn take-private of US telecoms company Alltel. However, Kohlberg Kravis Roberts has taken the top spot for financial sponsors having agreed $123bn of deals.

KKR’s global buyout total was nearly the same size as the entire value of announced deals in Europe, according to Dealogic, which was $734bn.

goldman sachs, private equity, investment banking, global markets

Labels: global markets, goldman sachs, investment banking, private equity