How deal value bounced back in the US PE middle market
March 18, 2021
The US PE middle market ended a tempestuous 2020 by recording $480.9 billion in deal value—the highest annual number on record.
PitchBook's 2020 Annual US PE Middle Market Report, sponsored by Antares Capital, Corporate Resolutions and ON Partners, and presented in partnership with ACG, explores the trends that drove this remarkable bounceback in the wake of the pandemic. Among the takeaways:
PitchBook's 2020 Annual US PE Middle Market Report, sponsored by Antares Capital, Corporate Resolutions and ON Partners, and presented in partnership with ACG, explores the trends that drove this remarkable bounceback in the wake of the pandemic. Among the takeaways:
- Deals priced under $500 million accounted for the greatest share of middle-market transactions since the global financial crisis, while a flight to quality at the upper end of the market drove elevated valuations in the technology, healthcare and financial services sectors.
- Exits fell for the second year in a row as many GPs held on to portfolio companies amid market turmoil.
- Although fundraising decreased from 2019's levels, LPs flocked to middle-market funds raised by the largest PE firms, especially vehicles focused on technology and healthcare.