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Nothing doing in big deal land / UK – Lack of deals sparks private equity shake-up.

One of my friends, a banker who has done quite a lot of big stuff, pointed out to me today how things are up there in big deal land.   You can’t get any bank to do more than a £25m hold and there’s no syndication market.  You can’t club more then five banks together so you can only get £125m of senior into a deal.  With a chunk of mezz, and a decent slug of equity maybe you can do a deal at up to enterprise £300m.

Luckily all their portfolios are rubbish (2007 deals done at 12x EBITDA with 10 turns of debt) otherwise they’d have nothing to do all day.

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