Lower Middle Market Weekly Outlook

Last week, Preqin released an interesting report analyzing the most consistent performing funds and firms in private equity. The results may surprise you.

Still, there are some caveats to the data — namely that “the league tables of consistent performers are compiled using only the funds for which Preqin has performance data and has assigned a quartile ranking. 2012, 2013 and 2014 vintage funds have been excluded as these funds are too early in their fund lives to generate a meaningful IRR.” Hillary Canada of the WSJ is quick to point out that the list is particularly absent of the biggest names in PE.

In other news, Zillow acquired Trulia for $3.5 billion. Here is our take of the acquisition.

Transactions:

• Leeds Novamark backs Commercial Foodservice Repair
• Artemis Capital Partners acquires Adcole Corporation
• TractManager acquires MD Buyline
• Baird Capital exits Frontage
• Thompson Street Capital Partners buys Stone Panel
• Graham Partners buys HemaSource Holdings
• Alleghany Capital Corporation invests in Jazwares
• Kinderhook sells Tectum Holdings
• Wingate Partners acquires MPI Product Holdings
• Catterton Partners acquires John Hardy
• Highlander Partners sells Vidrio Holdings
• VanDeMark Chemical acquires FramoChemical
• Energy Capital Partners to acquire Wheelabrator Technologies
• FARO acquires The CAD Zone

Events:

• CapIQ is hosting an event this afternoon on Dealing in Tech: Analyzing 2014 Top Technology M&A Trends
  • Register for the webinar
  • Register for the in-person event

Opinions:

• Even as markets tanked, this was the busiest week for IPOs in years
• PE allocation shrink at smallest foundations
• The aging of American business
• Are we on the cusp of the oil mega mergers?
• Buyout shops look to rivals for deals
• Hospital mergers are out, strategic alliances are in
• Private equity’s next frontier
• Things to consider when selling a private company
• Mergers aren’t always marriages made in heaven
• For private equity dealmaking, France is back in vogue
• The 70 PE firms most likely to pay you carried interest
• PE has curbed its appetite for consumer deals in Q2
• 10 of the most important technology mergers
• Pension funds hold cash for PE investment in Africa
• Goldman Sach’s private equity problem is getting bigger

This week in history… Microsoft invests $150 million for a minority investment in competitor Apple Computers (1997).