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Laxman Pai, Opalesque Asia:

The middle-market private equity professionals in the United States generally split on their outlook for the 2023 mergers and acquisitions (M&A) market - with 40 percent expecting deal activity to remain steady, 33 percent anticipating an increase, and 26 percent predicting a slowdown - they identified several areas of opportunity.

According to a recent report out from Katten Muchin Rosenman LLP, a financial law firm, despite concerns about rising interest rates, sky-high inflation, and a challenging regulatory environment, private equity investors remain cautiously optimistic about dealmaking this year.

The report, which polled 100 U.S. middle-market PE dealmakers engaged in a diverse array of industries, notes the amount of "dry powder" private equity firms have on hand is causing the disconnect in investors' perception of what 2023 holds for M&A.

Financial services was selected by 54 percent of dealmakers as the industry of greatest opportunity this year, followed closely by technology (47 percent). Further, respondents were bullish on the prospects of all-equity deals, ranking it as the most important element in successful deal creation in the year ahead, and a majority anticipate an uptick in all-equity transactions moving forward.

The majority of private equity firms report current investments in financial services (58 percent), followed by real estate (48 percent) and technology (43 percent). But as inflation drags on, d......................

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