Billions for masters of the buyout

PRIVATE equity groups and other company owners will end the year billions of pounds richer, according to new research.

The value of businesses they have sold or floated in the first nine months has hit record levels of £13.7bn compared with £8.8bn for 2003.

Major deals this year include the sale by private equity group Doughty Hanson of Dunlop Standard Aerospace - a leading supplier to the aerospace and defence industries - to a consortium fronted by Meggitt, the British aerospace engineer, for £790m.

Flotations included the listing of Admiral Insurance Services, which was a £110m managementbuyout in 1999 and floated for £710m. Another cause for optimism is the level of merger activity. Last week was the busiest that Ishbel Macpherson, head of emerging companies at Dresdner Kleinwort Wasserstein, can remember in her 21 year City career. On Thursday, her 22-strong team advised Aim-listed Sportingbet on its £169m acquisition of Paradise Poker and airport operator TBI on its acquisition of a 28% stake in Luton Airport from Alterra.

Just a day earlier, the team had advised AquaInvest on its £142 million acquisition of water company South Staffordshire. It had enjoyed only one day's rest, because on Monday DKW helped Somerfield to raise £50m fundraising to buy Safeway stores from Wm Morrison.

This week will also be busy, with the team helping Aim-listed outsourcing company Enterprise move to a full FTSE listing and getting to know new clients Forth Ports, Ricardo, Vitec and Amec.

She explains: 'The UK mid market tends to front-run the up cycle. And I hope this bodes well.'