Middle-market deal activity in the United States recovered in 2013 after getting off to a less-than-stellar start in the first half of last year. As we detail in our upcoming 1H 2014 U.S. PE Middle Market Report, to be released online Wednesday, deal activity picked up in the second half of 2013. All told, last year recorded declines in deal flow and total capital invested from 2012 levels, but was still in line with figures from the previous three years.
The resiliency in deal flow last year is notable, given the major jump in valuations for middle-market companies recently. The median valuation-to-EBITDA multiple ballooned from 8.4x in 2012 to 10.5x last year, largely driven by an increase in leverage made available for middle-market deals, defined by PitchBook as transactions valued between $25 million and $1 billion.
To read the rest of this primer on the middle market before our report publishes Wednesday, click here.