Middle-market PE drops 9.7% in deal value YoY in US
November 03, 2016
The middle market is where the action is nowadays for most PE firms, as they hunt for value in a persistently costly landscape. But even in its lower environs, prices have been inching upward and competition growing. 2016 MM deal value in the US hit $265 billion across 1,330 completed transactions through the third quarter, representing a 9.7% year-over-year decline in value and a 16% drop in deal count.
There's a lot to unpack when it comes to the decline in middle-market activity, as our 3Q 2016 US PE Middle Market Report details, ranging from continued easy access to cheap debt, an evolving lending scene, a growing spread between the quality of targets and more. Additional findings discussed in the report, developed in partnership with ACG and sponsored by Madison Capital Funding, include:
The emphasis on add-ons
Increasingly specialized fund strategies
Broader economic trends and whether or not the political climate is affecting dealmaking sentiment