GCG’s Q4 2020 Middle Market Private Equity Update provides an overview of latest trends in the private equity market.

Key findings include the following:

• • Private equity middle-market deal activity was down in 2020 vs 2019. Deal volume was down approx. 16 percent and overall deal value down 19 percent during 2020.

• • Most of the decline in deal activity was due to weak 2^nd and 3^rd quarters. The 4^th quarter of 2020 was up significantly from the prior 2 quarters. The 4^th quarter was down 5 percent from the 4^th quarter of 2019 from a value of deals done and down less than 1 percent from a volume of deals perspective.

• • Global private equity now has over $1.45 trillion of unspent capital raised. This is approximately twice as much as the amount available for investment at the end of 2015.

• • EBITDA multiples during the 4^th quarter of 2020 were at the 2^nd highest point for any quarter since 2013. The average multiple, in excess of 14 times EBITDA, is more than likely skewed by the poor performance of many companies during the 2^nd quarter of 2020 (due to COVID). That said, quality deals are getting premium  during the 2^nd quarter.

Click here for the full update.

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