The year yielded a bumper crop for private equity buyout deals, found Preqin. Deal value increased 10 percent over the previous year, although volume declined 7 percent, according to the company’s report. Overall M&A thrived as well, with the aggregate value of announced global mergers and acquisitions reaching the highest level since 2015, according to information collected by Bureau van Dijk, a Moody’s Analyticscompany. On a cautionary note looking forward, he points out that, "attitudes began to change in the fourth quarter, as the leveraged loan market-which has swollen in size since the financial crisis-saw downward swings in pricing." "A sustained market appetite for high-yield bonds and leveraged loans led to an easy financing environment in which dealmakers were able to attain attractive pricing for deal financing," writes private equity analyst analyst Wylie Fernyhough. The activity represents an increase of about 15 percent in both volume and value from the previous year. Dealmakers closed 2,971 transactions in the middle market (defined by deals worth $1 billion and less) with a total deal value of $427.9 billion. middle market exceeding $400 billion in 2018, the first year to achieve the milestone, according to a report by PitchBook. M&A was robust with in 2018, with deal activity in the U.S.
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