The 1Q 2019 US PE Middle Market Report highlights myriad factors that curbed dealmaking levels and stalled liquidity events in the quarter. These include distress in the high-yield and leveraged loan markets in 4Q, an inauspicious pricing environment and the longest government shutdown in history. Both MM deal and exit activity seem poised to rebound, however, as market tranquility was restored in the first quarter and as GPs circumvent market pressures with deal strategies such as add-ons and sale-leasebacks. MM fundraising levels remained aloft as LPs continued allocating capital to private equity at a rapid pace and as fund sizes continue to scale, which will likely bolster deal and exit sizes down the line. This edition also spotlights PE activity in China as the country looks set to play an eminent role in the PE industry.
This report was produced in partnership with ACG and is sponsored by Antares Capital, VRC and Chubb.