Thu, Jan 27, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Mid-market private equity deal activity blows past previous records

Friday, December 17, 2021

Bailey McCann, Opalesque New York:

Mid-market private equity deal volume is smashing records according to the latest data from PitchBook. By the end of the third quarter, deal volume had already surpassed that of the previous record year in both deal count and value. Sponsors are also exiting portfolio companies at a rapid clip - with a combined $184 billion in value through Q3-an annual record.

GPs are looking to get deals done while interest rates remain low. Data in the report shows that investors and sponsors alike are getting concerned about persistently high inflation and the impact that might have on margins.

A frothy market

Middle-market PE firms closed 2,847 middle-market buyouts in Q3 2021 for a combined $438.6 billion, Pitchbook said. Cumulative deal value is 50% higher than the next best four-quarter period, which was Q3 2018 through Q2 2019.

Anecdotal notes in the report highlight "auction processes with 20 or 30 bidders, businesses trading at previously unheard-of valuation multiples, and firms promising to close deals on truncated timelines-as short as a week or less-in order to sweeten their offers to sellers."

Deal activity is elevated across all sectors of the economy. In this environment, GPs are looking for companies that have the potential to capture long-term growth trends. Sponsors are beginning to worry ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. SPACs: Mobile commerce platform Rezolve to go public via $2bn SPAC deal, Malaysia's securities regulator cuts minimum fundraising for SPAC IPOs, raises price, Travel technology firm Mondee nears $1bn SPAC deal to go public, Italy's Zegna to start trading on NYSE from Dec. 20 after SPAC merger, New SPAC raises $230m to target real estate or mortgage fintech[more]

    Mobile commerce platform Rezolve to go public via $2bn SPAC deal From Reuters: Mobile commerce platform Rezolve said on Friday it will list in New York through a merger with a blank-check firm backed by billionaire Betsy Cohen, in a deal valuing the combined company at about $2 billion

  2. Tech: AI argues for and against itself in Oxford Union debate, 15% of Dutch pension funds fall victim to cyber crime, The fight to control the metaverse: Crypto die-hards prepare for battle with Facebook and Big Tech[more]

    AI argues for and against itself in Oxford Union debate From BBC: The Oxford Union has heard from many great debaters over the years, but this week added an artificial intelligence engine to its distinguished speakers. The AI argued that the only way to stop such tech becoming to

  3. PE/VC: SOKA-BAU to raise private markets allocation with first move in private debt, Biotech deals tumble to lowest in a decade over regulatory fears[more]

    SOKA-BAU to raise private markets allocation with first move in private debt From IPE: SOKA-BAU, the German umbrella organisation of the two pension funds for the employees in the construction industry ULAK and ZVK, is targeting an allocation to private markets of 15%, up from the curr

  4. New Launches: Goldman collects $5bn for Petershill IV, OSF Ventures launches third and largest venture capital fund, London growth investor Sprints Capital raises $602m for new technology fund, BlackRock launches two new active Climate Action funds, Edtech-focused Owl Ventures raises over $1bn across three funds[more]

    Goldman collects $5bn for Petershill IV From PE News: Goldman Sachs Asset Management has made a final close of its Petershill IV fund, the fourth vintage of its GP stakes growth-focused private equity funds. The firm said the fund had been oversubscribed with commitments mostly c

  5. PE/VC: A record year in private equity drives competition for lucrative industries, The power law - how venture capital ate the stock market, Europe's unicorn herd multiplies as VC investment more than doubled in 2021, Platform private equity deals could be 'fraught with risk'[more]

    A record year in private equity drives competition for lucrative industries From Institutional Investor: With more private equity capital available than ever before, valuations are high - and competition is even higher. According to PitchBook's 2021 annual PE breakdown report, which wa