US Private Equity Mid-Market Monitor: Q3 2020
Date
November 12, 2020 • 4 min read
DC Advisory's US team launches an inaugural mid-market monitor, exploring trends, activity and views from the experts, to bring you a comprehensive overview of mid-market activity and upcoming opportunities.
The US team explores:
- Highlights
- View from the experts:
- Restructuring
- Private capital
- Sector commentary
- Outlook for investors
Highlights
- Analysis of 2020 transaction data through Q3 2020 has signalled support for a continued and steady stream of transactions we believe, into H1 2021
- While exits are down more than 20% YoY and we face an anticipated 10-year low this CY – we believe there is a backlog of exits ready to go in H1 2021
- And, while Covid-19 total recovery feels a long way off, the equity markets have reacted positively to the recent news that a Covid-19 vaccine may be available sooner than expected
- Additionally, sponsors are seeing record levels of uncommitted capital (see graph 1) after hitting 2019 and 2018 highs. This has helped to keep multiples steady on marketed transactions, if not rising on a per deal basis
- For businesses with strong ‘stories’, interest from sponsors continues to increase, particularly as mid-market restructurings / refinancings have left limited opportunities to fulfil investment horizons going forward
- Of note is the strength and frequency of inbound strategic inquiries we continue to see from international clients – providing stability in the form of bilateral or cash bid deal currency driven by the longer term investment horizons sought
- For more detailed analysis by sector, please see our banker coverage overviews here >
- See DC Advisory’s most recent sponsor transactions >
Source: PitchBook ‘Private Funds Strategies Report Q2 2020’ [1]
A view from the experts
Insights on market activity in Q3 2020 from our US Restructuring and Private Capital experts, with the outlook for Q4 and beyond.
Sector by sector analysis
Our US sector specialists share their views on market activity in Q3 2020 and macroeconomic factor impacting deal flow, along with an outlook for Q4 and beyond.
References
[1] Private Fund Strategies Report Q2 2020, PitchBook, 9 October 2020
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