Clearwater is set to close the first quarter of the financial year with a strong level of activity, as the market shows strong signs of a rebound and corporate confidence grows.
In the last six months, Clearwater has completed 21 deals, with a combined transaction value of over €1.3bn, with over half of these deals completed during April, May, and June.
Most recently, Clearwater revealed its new brand identity, marking a significant milestone for the business, which remains committed to staying ahead of the market.
Senior individuals across Clearwater have also expanded their current leadership roles to focus further on the strategic development of the UK business. This has included founding partner, Michael Reeves, expanding his role to Chairman of the UK business, and Michael Loudon, Partner and Head of Industrials, joining the UK Board.
At Clearwater, we are committed to developing and nurturing our excellent talent within the business. At the start of the financial year 24/25, Finn O’Driscoll was promoted to Partner within the tech and tech services team, reflecting the momentum behind Clearwater’s focus on the sector and wider business.
Outside of the UK team, Bruce Weir joined Clearwater as International COO, supporting the firm across its European offices.
Clearwater also recently announced it has opened in Switzerland, with the Zurich-based ZETRA recently joining. This strategic move further enhances Clearwater’s international footprint, now encompassing 20 offices across 11 countries.
"In the last six months, Clearwater has completed 21 deals, with a combined transaction value of over €1.3bn"
Mark Taylor, UK CEO, said:
“Our positive performance over the last 12 months is reflective of our team’s ability to adapt to volatile market conditions and deploy expert deal craft to get transactions over the line. Our strategy of investing in key areas has worked well for us, and we’re seeing the rewards of that hard work come to life. We’re optimistic about the remainder of 2024 and committed to maintaining our market-leading position.
With regard to the executive changes, Michael Loudon has proved to be a fantastic Partner for us, and his appointment to the Board is exciting for the wider Clearwater business.
With regard to the Chairman role, Ken Williamson has been a great mentor for the business, guiding us through the issues caused by the pandemic and advising us on the succession issues that ‘people business’ face, and often overlook. Michael Reeves picking up the reins is great news for everybody within Clearwater. Along with Phil Burns, Michael founded the UK business and, independently, created Clearwater, which now covers 11 countries. He remains extremely passionate about its culture, which has made us hugely successful over the past 21 years.”
Clearwater’s performance in the UK market has been recognised consistently across industry awards, including regional Rainmakers and Dealmakers awards. During the last 12 months, the team has received the following trophies:
- UK Corporate Finance House of the Year at the Real Deals Private Equity Awards 2024
- Corporate Financier of the Year at the HealthInvestor Awards 2024
- National Corporate Finance Advisory Team of the Year at the Midlands Rainmakers Awards 2024 (second consecutive year)
- Corporate Finance Advisory Team of the Year at the Midlands Insider Dealmakers 2023 (third consecutive year)
- Corporate Finance Advisory Team of the Year at the East Midlands Insider Dealmakers 2023
- Large Business Corporate Finance Team of the Year at the North West Insider Dealmakers 2023
- Corporate Finance Team of the Year at the Business Desk North West Rainmakers 2023
Mark Taylor, UK CEO, said:
“Our positive performance over the last 12 months is reflective of our team’s ability to adapt to volatile market conditions and deploy expert deal craft to get transactions over the line. Our strategy of investing in key areas has worked well for us, and we’re seeing the rewards of that hard work come to life. We’re optimistic about the remainder of 2024 and committed to maintaining our market-leading position.
With regard to the executive changes, Michael Loudon has proved to be a fantastic Partner for us, and his appointment to the Board is exciting for the wider Clearwater business.
With regard to the Chairman role, Ken Williamson has been a great mentor for the business, guiding us through the issues caused by the pandemic and advising us on the succession issues that ‘people business’ face, and often overlook. Michael Reeves picking up the reins is great news for everybody within Clearwater. Along with Phil Burns, Michael founded the UK business and, independently, created Clearwater, which now covers 11 countries. He remains extremely passionate about its culture, which has made us hugely successful over the past 21 years.”
"Our strategy of investing in key areas has worked well for us, and we’re seeing the rewards of that hard work come to life. We’re optimistic about the remainder of 2024 and committed to maintaining our market-leading position."
Equally, debt market conditions are improving, which is an encouraging sign for the rest of 2024. Clearwater’s Debt Advisory team is one of the largest in Europe, and the team is expected to complete 12 deals, raising c. €576m of finance to support clients by the end of June.
Simon Chambers, Head of UK Debt Advisory, added:
“We are experiencing increased activity in the debt markets, principally driven by strategic acquisitions and refinancing opportunities, although we are starting to see an increase in new buyout activity. Lending appetite remains bifurcated where businesses with strong credit characteristics in favoured sectors are achieving top-of-the-market terms, otherwise, businesses are needing to search harder for appropriate liquidity.
Debt continues to be an attractive asset class for investors evidenced by a continuous stream of direct lending fundraisings, whilst bank debt continues to be available but limited by a number of lenders and their relatively small hold levels for mid-market borrowers.”
2024 outlook
As market conditions show signs of improved stability, including the likelihood of downward moves in interest rates and a more settled macro backdrop, we are seeing a more favourable environment for deal-making.
Private equity continues to play a significant role in the M&A landscape. PE firms have substantial dry powder left to deploy and are actively seeking investment opportunities in quality businesses. During the first half of the year, Clearwater worked on 18 transactions involving private equity, with a healthy pipeline of PE mandates scheduled for the remainder of the year.
Marcus Archer, UK Managing Partner, commented:
“We are starting to see the light at the end of the tunnel. With a number of funds behind both deployment and portfolio exits, and with valuation levels improving, we expect a pick-up in activity through the remainder of 2024 and into 2025. Our sponsor coverage team is increasingly advising clients we work with to focus on a small group of PE partners who will have real conviction about their business and focus on value creation and strategic synergies as they prepare their businesses for PE investment.”
Whilst fundraising for PE has been challenging, trends indicate that private equity firms are committed to investing in the UK mid-market, an activity which Clearwater is seeing more of.
Mark Taylor, concluded:
“Tougher market conditions have played to our strengths, which has enabled us to navigate some of the challenges the rest of the market has been facing.
As we start to see an economic bounce back, we’re seeing deal activity take place in the market which wasn’t necessarily happening 12 months ago. Our advice to all clients has been to transact at the correct time, rather than rush into a deal. Noting this, deal flow looks promising, and our pipeline suggests we’ll continue to see more positive performance throughout the rest of 2024.”
