GCG’s Q3 2021 Middle Market Private Equity Update provides an overview of the latest trends in the private equity market.
Key findings include the following:
- 2019 and 2020 saw the overall value of private equity-backed middle market deals drop from the high in 2018. 2021 is set to reverse that trend. On an annualized basis, it appears that M&A deal value will increase 30% from 2020. Based on the number of deals expected to close in the 4th quarter, we anticipate this percentage of growth to be even higher.
- The first three quarters of 2021 resulted in a strong acceleration of private equity middle market deal volume. Deal volume started to pick up in Q4 and 2021 looks to be strong with deal volume expected to be up at least 22% on an annualized basis. If the 4th quarter is as strong as we expect, 2021 will shatter the previous record high for deal volume.
- 2021 is on pace to potentially be the best year in middle market private equity fundraising. 2020 fundraising had a 24% decline in the amount of capital raised from 2019 and a 31% decline in fund count. On the positive side, however, the gap between money raised and money spent is at its highest historical level. This will continue the strong growth in overall private equity middle market M&A.
Click here for the full update.