£3bn private equity deals ‘signalling a turnaround’

Beleaguered private-equity firms finally had some good news today with two massive separate deals as Deutsche Bank research suggested life might be returning to the sector.

Cerberus and Carlyle Group clinched deals to sell companies worth more than $3 billion (£1.58 billion) each, exiting businesses they bought before the meltdown in the markets.

After diving to a snail's pace as the credit crunch killed off financing for deals, global merger and acquisition activity has risen in the past two months and a strategist at Deutsche Bank says it is likely to remain well supported in the months ahead.

Deutsche's Binky Chadha said the US could see more big deals. "Though financial market concerns continue, the value of announced M&A deals has been recovering notably in recent weeks," Chadha said in a note to clients. "The proportion of cash deals in total deals, which has been on a generally rising trend over the last three years, has been and remains very high since last summer."

Carlyle sold pipemaker John Maneely to Novolipetsk Steel, Russia's fourth-largest steelmaker, for $3.53 billion. Cerberus and Ampersand Ventures got $3.1 billion in cash from Aussie blood plasma products firm CSL for its biotech firm Talecris Biotherapeutics, that makes immune deficiency drugs.