News Digest: Steep fall in US PE mid-market deals in H1
September 19, 2022
Private equity deals in the US middle market touched $228.2 billion during January-June 2022, which represents decline over the corresponding period of 2021. However, the pace is healthy enough to suggest a steady build-up over the second half of the year.
The middle market’s size in the deals space is creating some challenges around fundraising activities, says a Pitchbook report on the US PE Middle Markets. Meanwhile, large GPs with abundant funds but averse to investing in the current environment have turned their attention to smaller PE opportunities, the report said.
Deal sizes reduced during the period with mid-market deals of over $500 million representing their lowest share of total value over the past decade. Meanwhile, LPs came close to their allocation limits and began associating with larger, established fund managers. Exit activities too fell for the second consecutive quarter with a cumulative value of $35.6 billion.