2021 has been one of the most prolific years for private equity activity, with a large number of buyout deals being driven by the middle market. This “higher-than-normal” activity is due in large part to the ease in which to fund with debt, along with a stock market. In terms of capital deployed, the past three quarters have been the most active quarters on record for the middle market. The fourth quarter is expected to be no different, with many banks preparing for a continued surge of deals closing.
Before the pandemic, the 10-year high for deal values in the U.S. middle market in any given quarter was $107 billion. During the height of the pandemic, this number decreased to $57.4 billion. Since that time deal activity rebounded significantly, with the third and fourth quarter of 2020 amounting to $228.6 billion in total deal value. 2021 got off to a hot start as well with both the first and second quarter surpassing $107 billion in total deal value.
Read the full story here: https://www.forbes.com/sites/kevindowd/2021/09/19/an-unprecedented-year-for-private-equity-is-spilling-into-the-middle-market/?sh=755a1329737a
