The uncertain public markets of 2000 lifted the volume and value of Europe's secondary buy-out market, which recorded its highest level of activity, up from 49 deals in 1997 to 57 in 2000, increasing almost five-fold in value to €10bn ($8.5bn).

Secondary buy-outs involve the sale by one private equity firm of a portfolio company to another financial buyer. They have increased in popularity as the public markets have become less viable both as an exit route in themselves and as a way for corporates to raise money to fund acquisitions from private equity houses in trade sales. In more mature markets like the UK, they offer opportunities to private equity firms looking for additional deal-flow.