As the private equity world begins winding down from a torrid year of dealmaking, some sponsors in the middle market have switched into “risk-off” mode, PitchBook reports
The public markets’ downturn and subsequent volatility, along with rising interest rates and the possibility of a recession, are leading middle-market sponsors to begin changing their approach to dealmaking after 2021’s good times. Investors say those factors are creating opportunities to scale platform companies—especially those in a fragmented market—through add-on acquisitions, in which sponsors buy smaller businesses to add them to the platform companies they already own. Read more.
