Middle-Market Activity in U.S. Continues Choppy Trend in 3Q
October 15, 2015
The U.S. middle market continues to account for the majority of all buyouts, yet even though most PE transactions lie in the $25 million to $1 billion size demographic, aggregate activity is declining. PE firms have plenty of capital to deploy, and opportunities for M&A across the core and upper ends of the MM are there, but just as investors are assessing heightened values in the public markets, private investors are doing likewise.
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3Q saw total PE deal activity in the U.S. MM continue to follow the choppy trend that began in the back half of 2013. 474 MM transactions were completed last quarter, a decline of over 3% QoQ and 7% on a yearly basis. While the downward trend in counts was slight, the drop in total capital invested was more considerable. 3Q capital invested was down more than 24% YoY at $79.6 billion—also a noticeable dip from the $90 billion+ invested in 2Q.
Be on the lookout for our complete 4Q U.S. Middle Market Report in the coming weeks. To get free access to our edition from last quarter, click here. PitchBook clients can access the VIR in the reports library of our platform; premium newsletter subscribers were also emailed a version of the report.