The average size of a European buyout has reached its highest amount since 2007, as improved bank lending and investor pressure to spend combine to drive valuations closer to boom-time levels.

The average size of a private equity-backed acquisition in the region has reached $397m (€301m) so far this quarter, the highest quarterly figure since the second quarter of 2007, when the average stood at $416m, according to data provider Dealogic.