LTE Charts of the Week showcase the power of Mergermarket’s Likely to Exit (LTE) predictive analytics engine. Find more financial sponsor exit opportunities by activating a two-week trial to Mergermarket or log in if you are a subscriber. 

• KKR, EQT and HIG have most predicted exit opportunities in Europe – Mergermarket LTE
• Sirti, Masmovil and Q-Park ranked among KKR’s next potential exits
• KKR exit activity declined in 2023 but 2024 pipeline looks promising

KKR has the highest number of predicted exits in Europe alongside EQT and HIG Capital, according to Mergermarket’s Likely to Exit (LTE) algorithm.

The financial sponsors all have five portfolio companies with LTE Scores over 50.

Exit activity at KKR and its peers has lost some momentum in recent years amid a slowdown in general M&A. KKR’s portfolio sales declined last year to USD 15.5bn, down from as high as USD 40bn in 2021.

Still, KKR has achieved cumulative exits totalling almost USD 100bn since 2020, according to deals tracked by Mergermarket, and there’s plenty of scope for more to come.

KKR’s possible exit opportunities include Sirti, Masmovil and Q-Park and could add over USD 16bn to that tally, if completed.

Sirti is backed by Pillarstone, a vehicle set up by KKR’s credit division, and boasts an LTE Score of 57 out of 100, the highest of any Europe-based company backed by the financial sponsor. A sale process for the Italian telecoms equipment business reportedly launched last November. Sirti has attracted several non-binding offers including one from financial sponsor Searchlight and others from industry peers Nextaly and Digital Value, according to a media report.

Spanish telecom platform Masmovil, which is jointly owned by KKR along with Cinven and Providence, has an LTE Score of 56. KKR agreed to merge the business with telco assets in Spain owned by Orange [EPA:ORA] in 2022 and the deal is expected to close later this month after securing regulatory and merger control clearances. The merger valued the combined business at an enterprise value of EUR 18.6bn, with a split of EUR 7.8bn for Orange Spain and EUR 10.9bn for Masmovil. Deal terms include the right to trigger an IPO which could allow KKR an opportunity to monetise some of its shareholding.

Q-Park, the Netherlands-based car park operator, is another asset that could be ripe for exit with an LTE Score of 55. The asset could be valued at about EUR 4bn, according to media reports.

LTE Scores are generated using a machine-learning algorithm developed by ION Analytics data scientists, engineers, and journalists leveraging 20+ inputs from more than a decade of proprietary Dealogic deal data and M&A intelligence. Find out more about the score’s predictive capabilities in Mergermarket‘s LTE Predictive Scoring Whitepaper.

Note: Data correct as of 19 March 2024

Source: Mergermarket.ionanalytics.com